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Distributed grid solutions that bring people, technology and energy together CONFIDENTIAL DO NOT DISTRIBUTE

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Page 1: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

Distributed grid solutions that bring

people, technology and energy together

CONFIDENTIAL DO NOT DISTRIBUTE

Page 2: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

• Applying tested models for emerging tech adoption and market transformation

• Company background: – Energy Program Design – Community Engagement – Codes and Standards – REC Markets – Blockchain – Advanced Meters – System Architecture – Computation

LO3 Energy Background

Utility Scale Programs

Page 3: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

Market Background

Current Energy Resources – Inefficient and Centralized

Energy

vs

Exergy

Source: Lawrence Livermore National

Lab

Page 4: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

Market Background

More than half of the estimated additional solar generation will be distributed, not utility scale

Source: EIA, Nov

2016

New Energy Resources - Renewable and Distributed

-20%

0%

20%

40%

60%

80%

Change in US Fuel Mix between Sept 2015 and Sept 2016

Page 5: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

Market Background

Source: EIA, Nov

2016

New Energy Resources - Predictably Intermittent

Source: CAISO Source: WattClairity, Jan

2017

Page 6: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

Drivers

Source: Accenture’s New Energy Consumer research program 2016

Consumers Demand New Choice and Services

Page 7: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

• Grid unidirectional and brittle - future calls for fast-acting, resilient, adaptive platform

• Current utility business models do not encourage Distributed Energy Resources

• Regulatory barriers limit consumer participation in energy

• Major market changes underway, unprecedented shifts by utilities and market actors

• “Prosumer” movement creating pressure on existing business models

• Broad, coordinated control of small scale DERs is uneconomic

Problem

Utility Grid Faces Structural Issues

Page 8: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion
Page 9: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

TransActive Grid

Blockchains Enable Transactions

Node A

Block 1

Block 2

Block….

Block n

Node B

Block1

Block 2

Block…

Block n

Node C

Block1

Block 2

Block…

Block n

Block Contains:

• Time stamp

• Ownership status

• Reference previous block

• List of transactions

Blockchain Transactions:

• Secure

• Efficient

• Frictionless

• Flexible

• Transparent

Page 10: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

LO3 Energy Tech

Page 11: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

Blockchain-based Microgrid Intelligence System • Transactive, distributed

intelligence system to control microgrids

• Based on open-source, cryptographically-secure protocol layer delivering military-grade cybersecurity and real-time data

• Auditable, immutable, secure device control

TransActive Grid

Page 12: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

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Tokenization P2P Markets Prosumers Community Microgrids

Reward efficiency and

resiliency allowing

participants to optimize

existing energy spend

according to individual

values, priorities and

outcomes

Tokenization of

energy production,

storage and

consumption creates

efficient local

markets

Efficient Local

Markets attract

investment, increase

impacts and create

local value for energy,

environment and

community

Rise of the Prosumers

neighbor-to-neighbor,

neighbor-to-business

community transactions

reward local markets

and return community

value

Community Energy – Sharing Economy

Page 13: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion
Page 14: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

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Consumer Choice

Page 15: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

• First peer-to-peer energy transactions executed

• Demonstration projects underway

• Testing business models

• Brooklyn Microgrid in development

– Over 50 sites metered and over 300 interested

• Partners

– Strategic Partners - Siemens, KIT, AEMO

Current Status & Next Steps

Page 16: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

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Next – Targeted Demonstrations

• Deploy – Technology

• Develop – Business Models

• Demonstrate – Market Adoption

Page 17: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

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New Technology – New

Choices – New Deal

They are your electrons, right?

Don’t forget that.

Page 18: Radical Innovation in the Electricity Sector – Lawrence ORSINI  - LO3 Energy - June 2017 OECD discussion

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