Asset logging in the energy sector: a scalable blockchain-based data platform

Alexander Djamali,Patrick Dossow,Fabiane Völter,Johannes Sedlmeir,Benjamin Schellinger,Michael Hinterstocker,Lukas Willburger

doi:10.1186/s42162-021-00183-3

Abstract

Due to a steeply growing number of energy assets, the increasingly decentralized and segmented energy sector fuels the potential for new digital use cases. In this paper, we focus our attention on the application field of asset logging, which addresses the collection, documentation, and usage of relevant asset data for direct or later verification. We identified a number of promising use cases that so far have not been implemented; supposedly due to the lack of a suitable technical infrastructure. Besides the high degree of complexity associated with various stakeholders and the diversity of assets involved, the main challenge we found in asset logging use cases is to guarantee the tamper-resistance and integrity of the stored data while meeting scalability, addressing cost requirements, and protecting sensitive data. Against this backdrop, we present a blockchain-based platform and argue that it can meet all identified requirements. Our proposed technical solution hierarchically aggregates data in Merkle trees and leverages Merkle proofs for the efficient and privacy-preserving verification of data integrity, thereby ensuring scalability even for highly frequent data logging. By connecting all stakeholders and assets involved on the platform through bilateral and authenticated communication channels and adding a blockchain as a shared foundation of trust, we implement a wide range of asset logging use cases and provide the basis for leveraging platform effects in future use cases that build on verifiable data. Along with the technical aspects of our solution, we discuss the challenges of its practical implementation in the energy sector and the next steps for testing in a regulatory sandbox approach.

Highlights

In light of the ongoing energy transition, the energy sector is subject to significant changes, which are expected to further accelerate in the future
Besides the high degree of complexity associated with various stakeholders and the diversity of assets involved, the main challenge we found in asset logging use cases is to guarantee the tamper-resistance and integrity of the stored data while meeting scalability, addressing cost requirements, and protecting sensitive data
By connecting all stakeholders and assets involved on the platform through bilateral and authenticated communication channels and adding a blockchain as a shared foundation of trust, we implement a wide range of asset logging use cases and provide the basis for leveraging platform effects in future use cases that build on verifiable data

Summary

Introduction

In light of the ongoing energy transition, the energy sector is subject to significant changes, which are expected to further accelerate in the future. Digitalization is a necessity to monitor and evaluate a large number of often decentralized assets and to ensure the proper functioning of the complex energy system (BDEW Bundesverband der Energie- und Wasserwirtschaft e.V. 2020). This is important for assets of systemic relevance and assets that are newly integrated into already digitalized processes. Reliable digital asset data can enable use cases that were previously infeasible or impractical In this regard, complex processes with a high demand regarding up-to-date data availability and temporal resolution can be newly implemented through the appropriate provisioning and handling of high-quality data (Albrecht et al 2018)

Objectives

Findings

Conclusion