projectScape

In the ERCOT C&I Micro-Hedging Project, commercial and industrial (C&I) power customers are outfitted with a smart-meter linked to a blockchain network which provides a highly secure method to create, store and share their energy usage data. Using the unique characteristics afforded by blockchain technology and the platform, C&I customers will be able to effectively share data within the market to automatically place orders for customized power hedges in time increments as small as on an hourly basis. This platform seeks to enable transactive energy services by providing three key pillars: Pillar 1 | Applications: The first pillar is a unified application or software layer providing standardized frameworks for users on a power system serving as the control elements. Pillar 2 | Hardware: Access to this application layer is facilitated by the second pillar of blockchain-enabled hardware devices such as smart meter infrastructure. In combination, the first and second pillars connect to a diverse set of users within an ecosystem via a series of self-executing transactions. Pillar 3 | Data: The resulting third pillar then becomes a decentralized real-time data set of transactions, interactions, and market dynamics readily accessible and usable by parties on the power system.

The ERCOT C&I Micro-Hedging Project is a collaborative trial effort between LO3 Energy and Direct Energy seeking to leverage blockchain technology to provide its customers with the ability to hedge energy purchases in micro-increments.

While the first deployment of this platform will serve as a proof of concept and will not yet be usable in the actual trade or transaction of energy between parties. The deployment looks to generate insights into customer behaviors and market dynamics while working with the system operator, generators, customers, and regulators to progress toward a working deployment.

Customers with this ability are able to optimize their energy procurements through greater flexibility and responsiveness targeting reduced costs of spot and fixed purchases.

The project leverages the unique attributes of blockchain in creating provenance, trust, and close to real-time data visibility between parties on the system.