Summary

The Energy Cloud transformation is characterized by complex systems of distributed, digital, and heterogenous assets. As the number of interconnected devices in distributed systems grows, the centralized command and control model must give way to a decentralized framework that increasingly relies on automated processes at the grid edge. As the role of automation grows, distributed systems operators must develop a framework for device-level trust to avoid creating new vectors for cyber attacks, fraud, or network manipulation while continuing to provide a high quality experience to end users.

Navigant Research expects that blockchain and distributed ledger technologies will play a key role in creating a secure foundation for edge computing and distributed intelligence. Blockchain augments existing systems management technologies with an authentication layer that enables devices in a network to constantly verify each others’ identity, location, state, and status. System operators can further expand their capabilities by combining blockchain with parallel technologies such as machine learning, artificial intelligence, and cybersecurity suites. Multiple partnerships between utilities and blockchain technology companies are exploring applications for blockchain in this space, from straightforward cybersecurity applications to entirely new models for balancing the grid.

This Navigant Research report explores the drivers behind the evolution of distributed systems management in the Energy Cloud and focuses on the role blockchain plays in creating a framework for device-level trust. The report examines the push for performance-based utility evaluation around the world and the strains that rapidly increasing volumes of data are placing on systems operators, emphasizing that blockchain is one piece of a larger strategy to adapt to these changes. It concludes with recommendations for anticipating this evolution in grid management and explores blockchain’s role in that context.

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