Please find our final deliverables at the following links:

Presentation video: https://www.youtube.com/watch?v=7Qy4zIqIoZw

Presentation slides: https://drive.google.com/open?id=0B8aFVCHxHDmjZTJfd3RYYUNWYmM

Whitepaper: https://drive.google.com/file/d/0B8aFVCHxHDmjdGRUaWlmN2lkMDA

Prototype source (and run it yourself!): https://github.com/davila9210/SmartCharge

Below is our whitepaper without layout, sources, figures and tables







Team members

Our team members are as follows: • Harm van den Brink - IT Architect smart grids & EV + Distributed ledger expert, Elaad

• Marcel Koolen – Consultant DevOps, Alliander

• David Lamers – Blockchain, IOTA & energy expert, Student Business & IT

• Berrie Staring – Blockchain Strategy & Architecture consultant, Alliander

• Tim Vermeulen – Manager R&D, Alliander

Challenge

Energy & Environment: How might we help connect consumers with securely validated sustainable, environmentally friendly energy services?

Problem statement

The market for electric vehicles is booming. A lot of European countries will even ban the production of petrol and diesel-powered cars in two decades , and some even in one decade . However, users of public charging stations, or private charging station made public, don’t know their energy source. They invest in an expensive electric vehicle to reduce their environmental impact but these charging stations might still provide them with energy from non-renewable resources. Therefore, we solve this problem by creating a free choice of source at the charging stations using blockchain. This solution solves also the wish from the European Commission and the Dutch Ministry of Economic Affairs to create free supplier choice at the charge stations . By making the source as well as the power station blockchain enabled, we create a guarantee of origin. Our solution for free choice source also solves a third problem: grid congestion. DSOs will experience difficulties in the future since electricity usage will increase due to decentral energy generation, the phasing out of gas and increase of electricity usage due to e.g. electric vehicles. Our solution will encourage the use of sources close to the charging station and take into account the current grid congestion in the smart grid by increasing the price for sources using areas where grid congestion is high.

So our blockchain solution free choice of source at EV charging stations creates source awareness, guarantee of origin and helps DSOs lowering grid congestion. This solution is created as follows: • Make charging stations and renewable energy sources meters blockchain enabled • Create flexible pricing per source based on available supply and distance to source • DSOs provides current grid congestion per postcal code to influence price • Let the charging station customer choose their source

Why blockchain

Blockchain, in comparison with traditional systems creates for us the following opportunities: • Decentral storage of meter readings available to authorized parties. Since multiple parties are involved they can verify the meter readings which are the input for the financial transactions • Immerse scalability using Raiden or IOTA since meter readings are submitting a lot of data for a lot of charging stations • Immutable meter data • Eliminating single point of failure by creating a shared system • Eliminating third parties who have to maintain a system which can solve this using traditional systems (e.g. in the Enexis case10, Elaad had to do this) • Reducing costs of financial transactions • Traceability of energy and so guarantee of origin

Market size

At the moment, the market for EV is in its beginning which creates a perfect starting point for our solution. When only looking at the Netherlands, there are now 120.000 electric vehicles from the in total 8.200.000 vehicles . So, the current penetration rate of EV is 1,46%. The Netherlands targets to have 1.000.000 EVs by 2025 and this will even develop further with approximately all vehicles being sold electrical by 2050. When focusing on the European Union the market size at the moment will currently be a few million with being a few billion in 2050. Putting our solution in place in multiple countries will require specific national market focus since grid operators differ per country. However, markets at the level of our solution work similar so expanding our solution only requires cooperation with new parties.

Other solutions

Multiple energy suppliers at one connection is being researched worldwide. Problems exist in defining roles and a central registration of these multiple suppliers. The registration is often not possible yet but due to the increase of renewable energy sources, this is possible on the short term (2018) . Since we had some meetings with regional grid operators while working on the hackathon we know they do research on multiple energy suppliers at one connection and even in combination with blockchain7. However, they didn’t work out any blockchain solution yet.

We also looked into BlockCharge c.q. Share & Charge which uses blockchain to make your private charging station public. This initiative is now being expanded in the oslo2rome idea by enabling Europe with blockchain charging. Furthermore, we have contact with Elaad that is developing an IOTA enabled charging station.

Solutions for grid congestions are created by DSOs in the way of making grid congestion public, or at least available for some companies. Dutch grid operator Alliander is looking into providing grid congestion per postal code which in our case can be used to calculate prices for each source.

Customer segments & pain points

Our product offers a solution for everyone with an electric vehicle. These EV owners now have a special card to pay for their energy at charge stations. However, they are not aware – and cannot influence – their power supplier or source. A full EV, charged with renewable energy, reduces CO2 emission by 70%. A rumor goes that EV’s charged with grey nonrenewable energy does not reduce CO2 emissions, however this is untrue . An EV charged with grey nonrenewable energy reduces CO2 emission by 30%. Since users choose to invest in a more expensive environmentally friendly car they should get the option to optimally harvest their investment: free choice of the powerstation source.

Our first target will be persons with an electric vehicle. They are the only users of our product and the growth of this segment is highly increasing. More and more people choose an electric vehicle nowadays. When our product is implemented, it becomes also more profitable and attractive to buy an electric vehicle when people want to buy a car. They can be guaranteed that their powerstation source is green and can select for a local source if they want.

By offering free choice of the powerstation source we create source awareness, guarantee of origin and help DSOs lowering grid congestion. DSOs, energy suppliers and sources are in this case key partners.

Value proposition

We create the following value propositions for the customers:

• Source awareness

• Free choice of the source

• Free choice of the powerstation supplier

• Local choice

• Green choice

• Variable pricing

• Reduce cost

• Optimally harvest their EV investment

• Support communities (grassroots )

Go to market strategy

To have a clear go to market strategy we have first identified the parties involved at charging stations. This market is complex and is shown in figure 1 and their abbreviations are explained in table 1.

See our pdf for the figure and table

The most important parties here are the CPO, eMSP, LV + PV and DSO. A CPO facilitates the charging points and the eMSP is responsible for the payment handling and is often executed by a supplier (LV) which can also be a business responsible partner (PV). In this case we can partner with EXE to facilitate the PV role and the LV role is only a regulatory required role which in this case does not fulfil a lot of roles. DSO’s facilitate the network and we offer them functionalities to lower grid congestion. The most important part for our go to market strategy is getting CPO’s and eMSP’s involved. This will be the first part of our go to market strategy. After extending our proof of concept we will corporate with CPO’s and eMSP’s so they can apply our technology in their products. Another option would be to create our own CPO. However, we think that roles should be defined and limited to their focus area. For us this is the technology of blockchain and charge stations and not to build them and create locations for them.

Risks

The main risks, with mitigation, likelihood and are explained below: • CPO’s and MSP’s are not interested in our product

o Mitigation: workout benefits for CPO’s and MSP’s and compare it with a non-blockchain solution

o Likelihood: middle

o Impact: high

• People don’t trust blockchain

o Mitigation: create a safe blockchain solution and extensively test it

o Likelihood: middle

o Impact: middle

• Technical solution with blockchain is not achievable

o Mitigation: none, our goal is blockchain

o Likelihood: low

o Impact: high

As can be seen the first risk is the most dangerous since it has a lot of impact and middle level of likelihood. Therefore, we should focus on the mitigation when cooperating with others

Impact

The impact of our solution is that people become energy source aware. Even though we can get energy everywhere through solar panels it is not as easy as that. It has to be available at the right time at the right volume. Being self-sufficient with your solar panels at home, using only renewable energy, is in almost all cases a fake statement. In the summer, you will use your own generated power but in winter and evenings and nights you use nonrenewable energy. Only in a few decades homes will become self-sufficient when battery prices are lower. We can measure our impact in the following ways:

• User satisfaction: are people more satisfied now they can choose their energy source at the charge station? What are their choices with different prices?

• User attractiveness: did it become more attractive for people to buy an EV now they can choose their own energy source and now they can be guaranteed their energy is green?

• DSO impact: does our solution lower grid congestion when prices differ?

• Price difference: we can analyze the price differences that will arise between the types of sources to know how attractive it is for users to choose a local source

Technical specifications

Our technical solution is threefold: • App

o Our app is for the users to hold their wallet, scan the QR code of the charge station and to choose their source o The app will be available for iOS and Android

o Will hold a light wallet implementation of Ethereum

• Suppliers

o Energy sources will be equipped with a dongle at their smart meter P1 port. The P1 port delivers live data which will be read with a small IoT device (dongle) to publish meter data in the blockchain

• Chargestations

o Chargestations will be equipped with a small IoT device that watches smart contract events and so start or stop charging.

Two types smart contracts are used: • FCSdeal: one contract for all deals(transactions) made

• FCSsupplier: an instance of this contract is created by each supplier

All components are already fully functional in our demo. Their interdependencies and interactions with the smart contract are already achieved in the demo. The demo exists of the following

Demo: • Controller

o Used for demo only. Uses instances of User and GoogleMaps for visualization

• MobileApp

o A user with an app scanning the QR code of the charge station. Is able to start a charge session by publishing their choice of source to the smart contract (FCSdeal)

• SmartSource

o On creation, deploys a smart contract (FCSsupplier) to the Ethereum blockchain. Publishes its meter value to the smart contract.

• SmartChargestation o Watches events on the FCSdeal smart contract. When start charge event is fired the charge station will charge according to the info in the smart contract

Roadmap

Q4 ‘17: Extend proof of concept Q1 + Q2 ‘18: Develop app, source dongle and charge station integration Search CPO partner and partner with energy supplier Q3 ’18: Pilot in a specific region Q4 ’18: Improve products Q1 ‘19: Launch product in the Netherlands Q2 ’19: Improve product Q3 ’19: Expand to other European countries by cooperating with CPO’s and suppliers

Current Prototype

We’ve build a prototype that shows how the independent instances (App, Source, Chargestation) will operate and communicate with the 2 types of smart contracts (FCSdeal & FCSsource). The prototype has been build with the Truffle Box React boilerplate and testRPC to quickly test our prototype. Our code can be found on github and you can run our prototype locally: https://github.com/davila9210/SmartCharge

MVP Test

Our concept has already been validated with energy market and grid operator professionals. We have talked to people from Alliander and Enexis which are both grid operators in the Netherlands. Their challenge is to solve the multiple suppliers at one charging station which is currently being achieved and will be further expanded in 2018. Our concept is the next step and gives the user a choice of source. Furthermore, we talked to Elaad who also works on blockchain payments (IOTA) at charge stations and they face the same problem as explained in our problem statement.

We still have to do a customer segment test. We first want to test our concept with current EV owners to validate the problem and our solution. We want to know if there is a demand for such an app and if they are willing to use it and maybe pay more for local green energy (if market prices require this). Furthermore, we have to validate the concept with charging point operators to see how our solution can be implemented in charging stations and if there are any technical complications.

Design decisions

We made the following design decisions for a workflow: • A user scans the QR code of the charging station with his SmartCharge app. The app now knows the ID of the charge station which can be used for interaction with the smart contract FCSdeal

• The user gets a list of available sources. In general there are 4 categories: local, green, grey or own solar panels. Suppliers check and predict if their source(s) is available for the next hour, if so, they give a price for their source per kwh. Sources are grouped per category where for each category the cheapest is shown to the user. This to prevent 200 sources being shown.

• The user selects how far he wants to drive to know how much kWh to charge and how much ether to transfer.

• When source is selected the app verifies in the sources’ smart contract if it had available energy the last 5 minutes (so his supply minus all active deals). When it was available a deal is made in the FCSdeal smart contract which also passes the deal to the source

• Car starts charging

o When a source didn’t supply enough energy in the last 5 minutes for all his active deals the oldest deal is dropped. A signal by the source is given to the user of the deal so his app can automatically select a second source. The second source will be of the same category

 The supplier had predicted it would have enough energy. The sanction for the supplier is that it has to pay for the financial difference the user will have + the user gets a minimal fee since he or she got energy for a source which he or she did not choose.

Design decisions outside a standard workflow:

• Each source has its own instance of a FCSsource smart contract

• Each source submits his P1 value every minute to the smart contract

• The app, charge station and source are trusted parties

o We can verify meter readings from source by its P4 data 24 hours later. Since one can submit false data into the dongle (the dongle publishes data to the blockchain) we can verify the source supply afterwards by comparing P1 and P4 data

• Regarding the energy markets: suppliers are not responsible for buying energy at the energy market and to submit this to Tennet with an E-program. We will use the Energy Exchange Enablers software Entrnce to do this for the whole portfolio of charging stations.

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