1. NAESB Fact Sheet
What’s the problem driving NAESB towards use of Blockchain?
REC trade/settlement accounting processes are cumbersome, involving many manual steps amongst trade participants
How does using Distributed Ledger Technology (DLT) address this problem?
DLT will introduce efficiency in processing - saving person- hours, and reducing cost.
This will be accomplished through development of standard(s) for digital processing and smart contracting
Do I have to change my REC contracts/procedures if I don’t need/want to?
No, only if you want to in part or completely.
What is a “smart contract”?
A smart contract is embedded software logic coupled with trackable digital actions, via Blockchain, designed to represent and execute trade & settlement terms and conditions
Is NAESB creating a DLT or selecting a DLT platform?
No – standards are platform agnostic. Existing State RPS and associated REC registries will remain unaffected.
Distributed Ledger Technology [DLT] NAESB Fact Sheet
Why do we want to pursue DLT? What problem are we trying to solve?
• DLT is a trackable software designed to represent and execute the terms of a contract.
• The gas-accounting process is cumbersome, involving many manual steps. As presented in R18007 will introduce efficiency - saving man-hours, and reducing cost.
Is NAESB creating the DLT technology? • No
What will it include: • Trading, renewable energy certificates (RECs), Market settlement, Automated billing, customer data, grid security, energy storage, unique REC identifiers, supply chain and logistics through the use of a smart contract.
What is a smart contract? • It is a trackable software designed to represent and execute the terms of a contract.
What R18007 Is Not - Does it involve crypto-currency (bitcoin)? • No
Other Potential Uses of DLT - Is NAESB effort limited to standards developed under R18007: • No, the standards developed will be foundational for use by the WEQ & RMQ, should an interest exist (current WEQ & joint WEQ/RMQ AP 2019 items for Power Accounting Close and REC Reporting & Close.