Energy and Innovation: Blockchain in the Energy Transition...Energy Generation Energy and electric...

Energy and Innovation:

Blockchain in the Energy Transition

Blockchain & Digital Ledger Services

2

Confidential information. For client presentation only.

Content

Introduction to blockchain01

02 Why is blockchain relevant?

03Blockchain in the Mexican Energy

Sector: Preliminary Results

04 Discussion Panel

3


Introduction

to blockchain

4


Bitcoin

A distributed ledger with

applications beyond Bitcoin

– Enables trust-less

counterparties to engage

in a direct transaction,

without requiring third

party intervention.

– Uses distributed

technology to register

transactions, granting

information transparency

and traceability.

Blockchain

– Bitcoin has provided

the foundations for

blockchain technology.

– Since 2008, in a trust-

less environment,

Bitcoin has shown that

blockchain is secure,

resilient and has not

yet been hacked.

InternetInformation

transfer

BlockchainValue transfer

Text Images Programs Videos

Money Contracts Patents Assets

Cryptocurrencies represent

only a part of blockchain’s

full potential

A cryptocurrency that leverages

blockchain technology

Blockchain vs Bitcoin

5


Blockchain Fundamentals

Distributed

Anonymous

Time-Stamped

Unanimous

Immutable

Trust

Programmable

Blockchain

Secure

Basic Concepts:

Blockchain is a permanent record of transactions in a de-centralized network. Features such as immutability, encryption, unanimity

and time-stamping make it secure and transparent.

Characteristics:

It uses distributed ledger technology, i.e. the

information is owned by everyone on the network.

Smart contracts are self-executing protocols that work

within blockchain when specified conditions are met.

Blockchain is a chain of blocks that contain information

linked chronologically, using cryptographic hash (code).

Information is time-stamped and cannot be

edited/deleted from the chain. It is tracked and updated

in real-time.

6


Why is blockchain relevant?

7


Media

CPG

Utilities

Chemical

Construction

High Tech

Pharma

Retail

Insurance

Agro

Finance

Oil & Gas

1. Understanding 2. Initiating 3. Escalating 4. Integrating 5. Transforming

24h

Digital adoption curve by industry

8


Disruptive Technology Radar

The following radar maps out the relative position of emerging technologies within multiple axes for a successful digital transformation:

– Information transparency

and traceability

– Data integrity and

immutability secured

in a distributed ledger

– Development of

distributed and

decentralized ecosystems

– Fraud and Inconsistency

detection through

enhanced monitoring

5

Blockchain

Nascent Dawn Strategic Bets Mature Downfall

10

15

5

6

7

13

12

11

16

4

RPA

Data and

analytics

Digital Marketing /

Social Networks

Cloud

14

9

8

Internet

of Things

Tecnología

móvil/aplicación

Digital payments

Cybersecurity

Online

Website

ERP Systems

Robotics & Drones

2

Open Banking

3

Augmented/virtual

reality

AI / ML

1

Quantum

Computing

9


Emerging trends & business models with blockchain technology

Traceability & Transparency

Data management Renewable energy traceability

Origin certification Carbon footprint credits

Grid management Distributed generation monitoring

Asset management Predictive equipment maintenance

Document digitalization Digital contracts and signatures

Market Decentralization

Peer-to-peer trading Renewable energy traceability

Wholesale/OTC trading Carbon footprint credits

Decentralized

marketplacesDistributed generation coordination

Micro/community grids Predictive equipment maintenance

Finance & Payments

Billing and settlements Prepaid and subscription models

Project financeCrowdfunding for small-scale

projects and infrastructure

Smart contract payments Payment automation

Cryptos, tokens

and stablecoinsEnergy/utilities tokenization

IoT & Smart Devices

Electric Vehicles EV charging stations

IoT/Smart devices Smart meters

Smart homes/buildings Data control for connected devices

Energy storage/batteries Grid flexibility

10


Emerging trends & business models with blockchain technology

Traceability & Transparency

Data management Renewable energy traceability

Origin certification Carbon footprint credits

Grid management Distributed generation monitoring

Asset management Predictive equipment maintenance

Document digitalization Digital contracts and signatures

Market Decentralization

Peer-to-peer trading Renewable energy traceability

Wholesale/OTC trading Carbon footprint credits

Decentralized

marketplacesDistributed generation coordination

Micro/community grids Predictive equipment maintenance

Finance & Payments

Billing and settlements Prepaid and subscription models

Project financeCrowdfunding for small-scale

projects and infrastructure

Smart contract payments Payment automation

Cryptos, tokens

and stablecoinsEnergy/utilities tokenization

IoT & Smart Devices

Electric Vehicles EV charging stations

IoT/Smart devices Smart meters

Smart homes/buildings Data control for connected devices

Energy storage/batteries Grid flexibility

11


Blockchain in the

Mexican Energy Sector:

Preliminary results

12


General survey overview

Which of the following best describes your current role and functional area?

Founder/Owner/Parter Board member

Executive level (director, VP, SVP, etc) C-suite

Management level Other

Founder/Owner

/Partner

31%

Executive level

(director, VP,SVP, etc.)

25%

Management

level

18%

Other

22%

Which of the following best describes your current role and functional area?

Blockchain Both Energy Other

Blockchain

16%

Both

27%

Energy

53%

Other

4%

Board member

4%

C-suite

0%

13


General survey overview

Which are your areas of expertise?

Energy Generation Energy and electric equipment provider

Energy services Renewable Energies

Digitalization (blockchain, Iot, IA, etc) Regulation

Research & Development

In which of the following sectors does the organization you work for primarily opérate in?

Public Sector/Government Private Sector/Corporate Entrepernuship/Startup

NGO Asociation/Foundation Academic/Research

Renewable

Energies

21%

Energy

services

13%

Energy

Generation

11%

Research &

Development

15%

Regulation

11%

Digitalization

(blockchain, lot,

IA, etc.)

25%

Academic/

Research

15%

Public Sector/

Government

21%

Association/

Foundation

11%

Private Sector/

Corporate

35%

Entrepreneurship/

Startup

14%

Energy and electric

equipment provider

4%

NGO

4%

14


Opportunities & Challenges

in the Energy Industry

15


What are the most relevant challenges and problems in the energy

sector today?

0% 10% 20% 30% 40% 50% 60% 70% 80%

Non-response

Other

Uncertainty

Transition to clean energy

Regulatory terms

New market players

Need of investment in new peojects

Lack of transparency

Lack of modernization in infrastructure

Geopolitical factors

Energy and fuel theft

Cyberattacks

Complex and unifficient processes

1 2 3 4 5

Rating from 1 to 5, 1 being the highest and 5 the lowest

1

2

3

4

5

16


What benefits does your organization expect from investing in

new technologies?


0% 10% 20% 30% 40% 50% 60% 70% 80%

Non-response

Other

Accessibility

Cost Savings

Eliminate Human Errors

Greater efficiency

Increase Productivity

Realiable information

Security

1 2 3 4 5

1

2

3

4

5

17


Digitalization in

the Energy Sector

18


Technologies your organization is currently considering within their

digital strategy?

Internet of

things/Smart objects

(Smart meters)

14%

Mobile connectivity

(Wireless, 5G, etc)

14%

3D printing

20%

Artificial intelligence/

Machine learning

8%

Blockchain (DLT’s,

cryptos, tokens, etc.)

16%Digital Twins

of products

16%

Data analytics

/Big Data

1%

Cloud

computing

5%

Robotic Process

Automation (RPA’s)

1%

Robotics

and Drones

2%Virtual/

Aumented reality

3%

19


Strongly agree Agree Disagree Strongly disagree

Do you believe current regulatory frameworks in your

country enhance the digitalization of the sector?

Disagree 58%

Agree 42%

Strongly

agree

19%

Disagree

48%

Agree

23%

Strongly

disagree

10%

20


Opportunities & Challenges

in the Energy Industry

21


0% 10% 20% 30% 40% 50% 60% 70% 80%

Non-response

Other

We don´t identify significant barriers/risks

The current infrastructure and the lack of modernization (required hardware)

Technology is unproven

Regulatory Issues

Potential security threats

Not currently identified as a business priority

Lack of skills and understanding

Lack of compelling application of the technology

Implementation

Data privacy issues

Added value/ROI uncertainty

1 2 3 4 5

What are the main barriers/risks in adopting blockchain

within the energy sector?


1

2

3

4

5

22


0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Non-response

Robotics and Drones

Robotic Process Automation (RPA's)

Mobile connectivity (wireless, 5G, etc)

Internet of things/Smart objects (smart meters)

Digital Twins of products

Data analytics/Big Data

Cloud computing

Artificial intelligence/Machine learning

3D printing

1 2 3 4 5

Which technologies do you believe add the greatest value

to blockchain?


1

2

3

4

5

?

23


Discussion Panel

24


What are the main barriers towards investing in new initiatives?


0% 10% 20% 30% 40% 50% 60% 70% 80%

Non-response

Other

Regulatory barriers/issues

Market uncertainty

Lack of skills, capabilities and understanding (information barriers)

Inneficient financing models

Infrastructure/System stability

Implementation difficulty

High cost/Business priority

Geographical barriers

Added value/ROI uncertainty

1 2 3 4 5

1

2

3

4

5

25


Which best describes the relevance of digitalization for

your organization?

Critical Important Not relevant Relevant but not a strategic priority

Low 10%

High 90%

Important

27%

Critical

63%

Relevant but not a

strategic priority

8%Not

relevant

2%

26


Which of the following blockchain associated benefits do you

expect to cause the greatest disruption in the energy sector?


0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Non-response

Other

Transparency

Traceability

Speed

Security

None of the above

Efficiency

Decentralization

Data Immutiability

Cost savings

Automatization

1 2 3 4 5

1

2

3

4

5

27


kpmg.com.mx

01800 292 KPMG

[email protected]

José Luis GonzálezBlockchain Specialist

KPMG Mexico

[email protected]

Tel: +52 55 3677 6770

mailto:[email protected]

28


Thank you!

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Energy and Innovation: Blockchain in the Energy Transition...Energy Generation Energy and electric...

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