{"id":90938,"date":"2020-10-16T20:57:21","date_gmt":"2020-10-16T17:57:21","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/germanys-blockchain-solution-hopes-to-remedy-energy-sector-limitations\/"},"modified":"2020-10-16T20:57:21","modified_gmt":"2020-10-16T17:57:21","slug":"germanys-blockchain-solution-hopes-to-remedy-energy-sector-limitations","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/germanys-blockchain-solution-hopes-to-remedy-energy-sector-limitations\/","title":{"rendered":"# Germany\u2019s blockchain solution hopes to remedy energy sector limitations"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3d828530db9\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3d828530db9\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/germanys-blockchain-solution-hopes-to-remedy-energy-sector-limitations\/#Blockchain_for_DER_automation\" >Blockchain for DER automation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/germanys-blockchain-solution-hopes-to-remedy-energy-sector-limitations\/#Pushing_blockchain_interoperability_to_its_limits\" >Pushing blockchain interoperability to its limits<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/germanys-blockchain-solution-hopes-to-remedy-energy-sector-limitations\/#What_about_regulations\" >What about regulations?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Germany\u2019s blockchain solution hopes to remedy energy sector limitations <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5ldS1jZW50cmFsLTEuYW1hem9uYXdzLmNvbS9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjAtMTAvYTQ3Mzk1OTUtYjY1Yi00NTIxLWFhMzktYWI5ZDkzNGI2NzdmLmpwZw==.jpg\" \/><\/p>\n<div data-v-5a136f3a=\"\">Distributed energy resources, or DERs, have the potential to disrupt traditional electricity markets. Therefore, it shouldn\u2019t come as a surprise that innovative countries are looking toward emerging technologies that will allow DERs to transform entire energy economies. <\/p>\n<p>Germany in particular is interested in using DERs to drive its digital energy economy while also complying with the <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/ec.europa.eu\/info\/strategy\/priorities-2019-2024\/european-green-deal_en\">European Green Deal<\/a>. As such, the Deutsche Energie-Agentur, also known as DENA \u2014 the main governmental group responsible for energy innovation in Germany \u2014 announced plans to trial a blockchain-based solution to construct a digital registry for DERs. <\/p>\n<p> Sara Mamel, senior export in digitalization at DENA, told Cointelegprah that DENA unveiled a pilot project six weeks ago called the \u201cBlockchain Machine Identity Ledger,\u201d or BMIL. According to Mamel, BMIL is being implemented together with Energy Web, a blockchain-focused nonprofit, along with 20 other partners in the energy and blockchain sectors:<\/p>\n<blockquote><p>\u201cThis is a highly ambitious project with the goal of testing an infrastructure layer for the german digital energy system of the future. We want this project to have the biggest impact possible for the energy sector as a whole, which is why we have a highly innovative set-up.\u201d<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Blockchain_for_DER_automation\"><\/span>Blockchain for DER automation<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Jesse Morris, the chief customer officer for Energy Web, told Cointelegraph that BMIL will construct a digital registry for DERs in Germany. Examples of DERs include rooftop solar photovoltaic power stations, battery energy storage like the Tesla Powerwall, smart thermostats and electric car charging stations. Morris added:<\/p>\n<blockquote><p>\u201cFor power grids around the world, this represents a massive shift in investment and infrastructure. From a centralized system with a relatively small number of very large power plants to a decentralized system with hundreds of millions of small assets working as part of a larger whole.\u201d<\/p><\/blockquote>\n<p>According to Morris, a blockchain-based digital registry for DERs leverages <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/w3c-ccg.github.io\/did-primer\/\">decentralized identifiers<\/a> that enable assets to self-register in the directory. This allows third parties like DER installers to easily verify claims about certain DERs. This solution should also help grid operators bring DERs into various market <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications to provide grid services, which would serve as the basis for streamlined settlements after energy services are delivered. <\/p>\n<p>This is extremely important, especially for a country like Germany, which ranks as the fourth-largest economy worldwide. It\u2019s also interesting to point out that a European Parliament <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.europarl.europa.eu\/RegData\/etudes\/ATAG\/2020\/651944\/EPRS_ATA(2020)651944_EN.pdf\">document<\/a> on DERs suggests that by 2024, global deployment of DERs will have overcome the deployment of centralized energy generation. The document further states that in Germany, renewables produced from DERs hold a significant market share, paving the way for more decentralized energy production. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Pushing_blockchain_interoperability_to_its_limits\"><\/span>Pushing blockchain interoperability to its limits<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If successfully executed, Morris explained that BMIL could serve as the basis for a wide range of DERs supporting both Germany\u2019s wholesale and retail electricity markets: \u201cThis will make it easy, efficient and low cost for any DER in Germany to participate in the energy market. Grid operators and utility providers will also gain access to an untapped decarbonized Germany energy system.\u201d<\/p>\n<p>However, technical challenges remain. Mamel from DENA noted that BMIL is a project built around the premise of interoperability \u2014\u00a0one of blockchain\u2019s greatest challenges to date.\u00a0While DENA is <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> agnostic, Mamel explained that DENA aims to test a solution that will be applicable to the German energy sector, which already consists of a decentralized framework with many industry players using different standards.<\/p>\n<p>As such, DENA decided to take an interoperability approach to drive Germany\u2019s energy economy, testing two blockchain development environments in BMIL. Both Ethereum and Substrate, the blockchain-building framework for Polkadot, will be applied, along with different concepts regarding decentralized identity protocols. \u201cThe results of this experiment remain to be seen, but we are highly confident that we might be setting a new standard for the energy industry as a whole,\u201d said Mamel.<\/p>\n<p>If interoperability challenges are met, the BMIL project could benefit the entire blockchain sector. For instance, Jonathan Waldenfels, a blockchain engineer at Energy Web, told Cointelegraph that one problem in the blockchain space is that there are many use cases running on various different chains. According to Waldenfels, BMIL tries to reflect just this in the pilot project:<\/p>\n<blockquote><p>\u201cEnergy Web looks to innovate in the blockchain space and wants to see how our tech stack, EW-DOS, can integrate with new technologies. For EW, this pilot is a great opportunity to explore how EW-DOS can be utilized across base use cases running on different chains on a shared identity registry. Secondly, it shows how EW-DOS can integrate into new blockchain technologies like Substrate and Polkadot.\u201d<\/p><\/blockquote>\n<p>Waldenfels expects this use case to be a likely business architecture moving forward and hopes the energy sector can help the entire crypto industry see what\u2019s possible by combining multiple chains and ecosystems under one umbrella with this project.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_about_regulations\"><\/span>What about regulations? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Technical challenges aside, regulatory standards could also prove to be an issue for such solutions. Mamel explained that the German energy sector is among the most complicated and regulated ones in the world. As such, BMIL claims to be fully compliant with all regulations in the German energy sector. \u201cIt was of great importance for DENA to work hand in hand with existing regulatory guidelines, trying to enhance and boost existing regulation to the next level by providing interesting use cases to build a bridge between theory and practice,\u201d said Mamel. <\/p>\n<p>However, Mamel noted that important questions remain, such as how to ensure that the BMIL blockchain solution is compatible with the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">General<\/a> Data Protection Regulation, along with understanding the regulatory challenges that might come up when DENA attempts a \u201cfull roll out\u201d of the Blockchain Machine Identity Ledger in the German energy system.<\/p>\n<p>Although concerns remain, using a blockchain solution for DERs is highly promising. Paul Brody, global innovation lead for blockchain at big four firm Ernst &amp; Young, told Cointelegraph that this is an area of significant opportunity for blockchain technology because the nature of the power grid is changing in a way that elegantly matches the nature of blockchain software: It is becoming decentralized. Brody further noted that every industrial revolution has been closely linked with major developments in information technology:<\/p>\n<blockquote><p>\u201cIf we are going to have an industrial revolution that decentralizes power production and manufacturing with solar panels, batteries, and 3D printers, then it will probably be accompanied by an information technology revolution that is also decentralized.\u201d<\/p><\/blockquote>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/germany-s-blockchain-solution-hopes-to-remedy-energy-sector-limitations\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Germany\u2019s blockchain solution hopes to remedy energy sector limitations &#8221; Distributed energy resources, or DERs, have the potential to disrupt traditional electricity markets. Therefore, it shouldn\u2019t come as a surprise that innovative countries are looking toward emerging technologies that will allow DERs to transform entire energy economies. Germany in particular is interested in using&#8230;<\/p>\n","protected":false},"author":1,"featured_media":90939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.eu-central-1.amazonaws.com\/s3.cointelegraph.com\/uploads\/2020-10\/a4739595-b65b-4521-aa39-ab9d934b677f.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,74983,43905,71511],"class_list":["post-90938","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-decentralization","tag-germany","tag-government"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/90938","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=90938"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/90938\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/90939"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=90938"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=90938"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=90938"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}