Blockchain in Energy: A Practical Path to Standardization

Blockchain in Energy: A Practical Path to Standardization

 

National Law Review Legal Publishing Our previous post, Blockchain in Energy: Stakeholders, Solutions and the Path to Standardization , focused on the regulatory landscape in the energy industry and how it relates to standardization among blockchain technology in the renewable energy ecosystem. Alternatively, initiatives spearheaded by industry groups, for example the North American Energy Standards Board (NAESB), and the stakeholders working with those groups provide a clearer picture to the practical means to create standardization. Currently, NAESB is developing a standard digital representation of natural gas trade events using blockchain. Their efforts are limited to this particular use case, but the mechanism for developing standards lays out the path for standardization that is replicable for other segments of the energy industry, such as tracking and managing renewable energy certificates (RECs).

NAESB is an industry forum that brings together stakeholders in the wholesale and retail natural gas and electricity marketplaces to develop and promote standards within such marketplaces. NAESB is industry-driven, meaning that all interested parties can join NAESB and those interested parties can propose standards. To keep interests balanced, NAESB is organized by quadrants and those quadrants are further divided into segments. The quadrants are wholesale gas, wholesale electric, and retail markets, and each segment thereof includes the key categories of stakeholders. The Executive Committee , comprised of representatives from each segment, is responsible for standards development. Maintaining these operating procedures allows NAESB to ensure that the standards it develops align with the desires and best interests of the industries […]