1. DISRUPTING THE STATUS QUO
DIGITALIZATION OF THE
RENEWABLE ENERGY CREDIT SUPPLY CHAIN

2. OUTLINE Background NAESB - Today
Distributed Ledger Technology Solution
REC DLT Standards Setting Process
Challenges

3. CADE BURKS FOUNDER AND CHIEF DIGITAL OFFICER BIG DATA ENERGY SERVICES
A Digital Asset Management company processing over 100 million usage reads per day and over 25 million business transactions a month in the energy space.
Vice Chair of North American Energy Standards Board (NAESB)

4. NAESB - TODAY ORIGIN AND SCOPE:
The North American Energy Standards Board (NAESB), originally the Gas Industry Standards Board (GISB), serves as an industry forum for the development and promotion of standards which will lead to a seamless marketplace for wholesale and retail natural gas and electricity, as recognized by its customers, business community, participants, and regulatory entities.
GISB est / NAESB est. 2001
Strong relationship with the Federal Energy Regulatory Commission (FERC), National Association of Regulatory Utility Commissioners (NARUC), Department of Energy (DoE), North American Electric Reliability Corporation (NERC), Department of Commerce (DoC), National Institute of Standards and Technology (NIST), National Petroleum Council (NPC) and various state regulators.

5. NAESB - TODAY Wholesale Electric Market Standards: ~2,000
ORIGIN AND SCOPE:
Wholesale Electric Market Standards: ~2,000
Wholesale Gas Market Standards: ~600
Retail Market Standards: ~1,700
Other Products
The Electric Industry Registry
e-Tag Functional Specification
Common Coding System for Interstate Pipelines

6. Organization by Quadrant and Segment:
North American Energy Standards Board – NAESB 101 Webinar
Organization by Quadrant and Segment:
Wholesale Gas – 5 Segments
End Users
Local Distribution
Pipelines
Producers
Services
Wholesale Electric – 7 Segments
Distribution/LSE
Transmission
Generation
Marketers/Brokers
Independent Grid Operators/Planners
Technology and Services
Retail Markets – 4 Segments
Retail Electric End Users/Public Agencies
Retail Gas Market Interests
Retail Electric Utilities
Retail Electric Service Providers/Suppliers

7. CORPORATE STRUCTURE & GOVERNANCE DOCUMENTATION:
Certificate of Incorporation
Bylaws
Quadrant Procedures
NAESB Operating Practices
Board Motions and Resolutions
Various Memoranda of Understanding

8. STANDARDS DEVELOPMENT PROCESS:
North American Energy Standards Board – NAESB 101 Webinar
STANDARDS DEVELOPMENT PROCESS:
American National Standards Institute (ANSI), established in 1918, is the primary organization for fostering the development of technology standards in the United States.
The process followed is ANSI accredited -- ANSI accredits organizations as Standards Development Organizations (“SDO”) based on their adherence to ANSI’s cardinal principles of standards-setting.
The process is open and any interested party can participate and contribute to the standards development regardless of membership in NAESB.
Non-member Meeting Participation Fee

9. OTHER EXAMPLES OF COORDINATION:
Department of Energy
Surety Assessments
Data Privacy Standards - DataGuard
Department of Defense
Defense Logistics Agency
Department of Interior
Bureau of Land Management
National Institute of Standards and Technology
Smart Grid Standards
White House Office of Science and Technology Policy
Green Button Standards
National Petroleum Council
Gas-Electric Coordination
General Services Administration

10. Current peer-to-peer technology
Over 30 different REC Markets. Exchanges are different for every market
Consumer D
Generator A
Application
Business Logic
Data
Base
Application
Business Logic
Data
Base
Each REC has a unique identifier and
can only be owned by one entity
Broker B
Utility D
Application
Business Logic
Data
Base
Application
Business Logic
Data
Base

11. Distributed Ledger Technology (DLT)
Generator A
Broker B
Utility C
Consumer D
Node A
Smart
Contract
Ledger A
Node B
Smart
Contract
Ledger B
Node C
Smart
Contract
Ledger C
Node D
Smart
Contract
Ledger D
Blocks written to Distribute Ledger
Node A
Node C
Node A
Node D
Node B
Node C
Node B
Node D
Node A
Node B

12. How Distributed Ledger works
A Distributed Ledger (also called a Shared Ledger, or Distributed Ledger Technology, DLT) is a consensus of replicated, shared, and synchronized digital data spread across multiple sites, countries, or institutions.
Each data point is issued a synchronized “Hash #” creating an unique data file that is difficult to change.
It can be a Public or Private DLT. All received REC data must be verified by the entities transacting the REC.

13. How do I pick the “right” DTL platform
Deciding in the correct DLT is not about picking winners and losers like choosing between Betamax and VHS.
Think of DLT being like sharing a common database across the REC Supply Chain without having to agree on common software.

14. Smart Contracts represent digital protocols that execute predefined processes without the need for a third party verification.
Smart Contracts are a collection of if/then statements, that greatly reduce the time to execute transactions, eliminating technical errors, and cost.
Smart
Contracts

15. Smart Contract use case
DLT and specifically smart contracts allow users to write sophisticated transactions thus creating invoices that pay themselves through notification of transfer or any pre-set condition is received.
Utilities and End-Use Consumers can complete and reconcile as transactions take place reducing the time of verification and
eliminating redundancies
Smart contacts can store meta data on generation/project locations, NA Renewable Registry, Attestation and Retirement times and changes to contracts specification.

16. Smart Contracts put the pieces together

17. NAESB Standards Setting Approach
Identify Scope of Work, including REC Markets
Identify and document standard data sets
Identify and document process flows
Develop Smart Contracts
Develop Proof of Concept from REC Generation to Retirement
Define what Success Looks like when rolled out

18. CHALLENGES
Lack of understanding by industry - Lots of education required
Market by Market differences and competing solutions
Regulatory knowledge, understanding, and monitoring