The Blockchain Effect: From Inter-Ecosystem to Intra-Ecosystem Competition

in Proceedings of the Twenty-Ninth European Conference on Information Systems (ECIS) (2021)

Blockchains enable distributed operation, decentralized control, and token-based representations of tangible and intangible assets. Organizations commonly use blockchain technology to foster collaboration ... [more ▼]

Blockchains enable distributed operation, decentralized control, and token-based representations of tangible and intangible assets. Organizations commonly use blockchain technology to foster collaboration. In this paper, we investigate the use of blockchain to foster competition. We conduct a single-case study of Germany’s mobility-as-a-service community and its efforts to use blockchain as a technical backbone for mobility ecosystems. The community views blockchain as a technology that embodies organizing principles of empowerment and equality. These principles motivated the community to rethink ecosystem structure. In particular, the community began to question the exclusive, non-adversarial position of mobility service aggregators. We find that rethinking this position might shift their competitive focus from the inter- to the intra-ecosystem level and enables the creation of a larger ecosystem. As a second-order effect, the community began to rethink ecosystem governance. Specifically, it began to explore options for effectively distributed decision making while safeguarding efficiency. [less ▲]

How Different Electricity Pricing Systems Affect the Energy Trilemma : Assessing Indonesia?s Electricity Market Transition

Report (2021)

Many countries have a clear policy objective of increasing their share of renewable energy sources (RESs). However, a major impediment to higher RES penetration often lies in the historically grown ... [more ▼]

Many countries have a clear policy objective of increasing their share of renewable energy sources (RESs). However, a major impediment to higher RES penetration often lies in the historically grown structures of a country’s electricity sector. In Indonesia, policymakers have relied on cheap fossil fuels and state control to provide the population with access to both reliable and affordable electricity. However, this focus on only two of the three horns of the energy trilemma, namely energy security and energy equity (and not sustainability), may put Indonesia at risk of missing its ambitious RES targets. In this context, a number of small- scale reform attempts to promote RES integration in recent years have proved to be relatively unsuccessful. Like many other countries, Indonesia needs clear policy directions to avoid an unsustainable lock-in into a fossil fuel future. In the last decades, several other countries have successfully restructured their electricity sectors, for example by introducing a wholesale market for electricity under different electricity pricing systems, including nodal, zonal, or uniform pricing. These countries may hold valuable experiences of overcoming the historically grown barriers to successful RES integration through a greater role for market mechanisms. This paper develops three generic models that allow policymakers to analyze the impact of introducing either a nodal, a zonal, or a uniform pricing system on the three horns of the energy trilemma in their country. We evaluate our model using a simplified network representation of the Indonesian electricity sector. Our results indicate that each of the pricing systems is able to foster specific horns of the energy trilemma. Considering that any major reform intended to improve energy sustainability in Indonesia will only be a success if it also addresses energy security and energy equity, we also discuss our results from the perspective of energy justice and the need to balance the country’s energy trilemma. Ultimately, we illustrate a transformation pathway for a more sustainable and just transition to a low-carbon economy in Indonesia. [less ▲]

How did the German and other European electricity systems react to the COVID-19 pandemic?

in Applied Energy (2021), 285

The first wave of the COVID-19 pandemic led to decreases in electricity demand and a rising share of Renewable Energy Sources in various countries. In Germany, the average proportion of net electricity ... [more ▼]

The first wave of the COVID-19 pandemic led to decreases in electricity demand and a rising share of Renewable Energy Sources in various countries. In Germany, the average proportion of net electricity generation via Renewable Energy Sources rose above 55% in the first half of 2020, as compared to 47% for the same period in 2019. Given these altered circumstances, in this paper we analyze how the German and other European electricity systems behaved during the COVID-19 pandemic. We use data visualization and descriptive statistics to evaluate common figures for electricity systems and markets, comparing developments during the COVID-19 pandemic with those of previous years. Our evaluation reveals noticeable changes in electricity consumption, generation, prices, and imports/exports. However, concerning grid stability and ancillary services, we do not observe any irregularities. Discussing the role of various flexibility options during the COVID-19 pandemic, a relatively higher grid capacity resulting from a decreased electricity consumption, in particular, may have contributed to grid stability. [less ▲]

Blockchain Won’t Kill the Banks: Why Disintermediation Doesn’t Work in International Trade Finance

in Communications of the Association for Information Systems (2021), 49

In the financial services industry, many people assume blockchain to have significant impacts. From research and practice, we observe two main paradigms of how organizations interact with blockchain ... [more ▼]

In the financial services industry, many people assume blockchain to have significant impacts. From research and practice, we observe two main paradigms of how organizations interact with blockchain. First, organizations use blockchain to optimize existing processes (blockchain-based business process optimization (BPO)). Second, organizations use blockchain to disrupt existing processes, foster disintermediation, and enable disruptive business models (blockchain-based business process disruption (BPD)). However, we lack scientific research that evaluates its de facto potential. We bridge this gap by following a design science research approach to design blockchain-based business process re-engineering (BPRE) for a letter of credit that combines the advantages of BPO and BPD. We conduct three design cycles and develop three artefacts: a BPO, a BPD, and a BPRE approach. Our BPRE approach combines the advantages of partial disintermediation (i.e., increased efficiency and transparency) with the advantages of intermediaries (i.e., process flexibility, liquidity provision, and dispute mediation). [less ▲]

Renewable electricity business models in a post feed-in tariff era

in Energy (2021), 216

To expand intermittent renewable electricity sources (RESs), worldwide energy policy makers have introduced fixed feed-in tariffs (FITs). However, FITs typically expire after a limited time period. Due to ... [more ▼]

To expand intermittent renewable electricity sources (RESs), worldwide energy policy makers have introduced fixed feed-in tariffs (FITs). However, FITs typically expire after a limited time period. Due to the intermittent electricity supply of RES, market distortions, and insufficient flexibility options, exclusive participation in wholesale electricity markets might not be a viable business model for RES that no longer receive a FIT. Thus, it remains unclear which RES business models (RBMs) ensure a viable operation of RES in the post FIT era. To close this research gap, we present a typology encompassing five RBM archetypes: wholesale electricity market (1), physical power purchase agreements (2), nonphysical power purchase agreements (3), self-consumption (4), and on-site power-2-X (5). The typology includes three additional service layers, which may enhance the profitability of RBM archetypes by opening up additional revenue streams: infrastructure services (1), electricity storage services (2), and ancillary services (3). We highlight the need for new approaches to quantify the viability of RBM archetypes and services layers under different regulatory, technological, and market conditions. To prevent the imminent decommissioning of existing RESs, policy makers must shape the next era of the energy transition, weighting the implications of market-based and intervention-based energy policy approaches. [less ▲]

Electricity Spot Market Design 2030-2050

Report (2021)

Driven by the climate conference in Paris in December 2015 countries worldwide are confronted with the question of how to shape their power system and how to establish alternative technologies to reduce ... [more ▼]

Driven by the climate conference in Paris in December 2015 countries worldwide are confronted with the question of how to shape their power system and how to establish alternative technologies to reduce harmful CO2 emissions. The German government plans that even before the year 2050, all electricity generated and consumed in Germany should be greenhouse gas neutral [1]. To successfully integrate renewable energies, a future energy system must be able to handle the intermittent nature of renewable energy sources such as wind and solar. One important means to address such electricity production variability is demand-side flexibility. Here, industry plays a major role in responding to variable electricity supply with adequate flexibility. This is where the Kopernikus project SynErgie comes in with more than 80 project partners from academia, industry, governmental, and non-governmental organizations as well as energy suppliers and network operators. The Kopernikus project SynErgie investigates how to best leverage demand-side flexibility in the German industry. The current electricity market design in Germany is not well suited to deal with increasing levels of re- newable energy, and it does not embrace demand-side flexibility. Almost 6 GW of curtailed power in 2019 provide evidence that changes are needed with respect to the rules governing electricity markets. These rules were designed at a time when electricity generation was concentrated on a few large and dispatchable conventional power plants and demand was considered inelastic. The SynErgie Cluster IV investigates how a future-proof electricity market design should be organized. The corresponding Work Package IV.3.1 more specifically deals with analyzing and designing allocation and pricing rules on electricity spot markets. The resulting design must be well suited to accommodate demand-side flexibility and address the intermittent nature of important renewable energy sources. This whitepaper is the result of a fruitful collaboration among the partners involved in SynErgie Cluster IV which include Germany’s leading research organizations and practitioners in the field. The collaboration led to an expert workshop in October 2020 with participation from a number of international energy market experts such as Mette Bjørndal (NHH), Endre Bjørndal (NHH), Peter Cramton (University of Maryland and University of Cologne), and Raphael Heffron (University of Dundee). The whitepaper details the key recommendations from this workshop. In particular, the whitepaper recommends a move to a locational, marginal price-based system together with new bidding formats allowing to better express flexibility. We argue in favor of a one-step introduction of locational, marginal prices instead of repeatedly splitting existing zones. Frequent zone splitting involves recurring political debates as well as short- and long-run instabilities affecting the basis for financial con- tracts, for example. Importantly, the definition of stable prize zones is very challenging with increasing levels of distributed and renewable energy sources. The recommendation is the outcome of an intense debate about advantages and downsides of different policy alternatives. However, such a transition to locational, marginal prices is not without challenges, and it is a call to arms for the research community, policymak- ers, and practitioners to develop concepts on how to best facilitate the transition and ensure a reliable and efficient electricity market of the future. We’d like to thank all the project partners and are grateful for the financial support from the Federal Ministry of Education and Research as well as the Project Management Jülich. Hans Ulrich Buhl (Cluster Lead) Martin Bichler (Work Package Lead) [less ▲]

Digitization of certification processes in the asylum procedure by means of digital identities: A feasibility study by Germany’s Federal Office for Migration and Refugees

Report (2021)

O'Dair, Marcus: Distributed Creativity

in Zeitschrift für Urheber- und Medienrecht (2021), (11),

Ein Blick auf aktuelle Entwicklungen bei Blockchains und deren Auswirkungen auf den Energieverbrauch

in Informatik-Spektrum (2020)

The enormous power consumption of Bitcoin has led to undifferentiated discussions in science and practice about the sustainability of blockchain and distributed ledger technology in general. However ... [more ▼]

The enormous power consumption of Bitcoin has led to undifferentiated discussions in science and practice about the sustainability of blockchain and distributed ledger technology in general. However, blockchain technology is far from homogeneous—not only with regard to its applications, which now go far beyond cryptocurrencies and have reached businesses and the public sector, but also with regard to its technical characteristics and, in particular, its power consumption. This paper summarizes the status quo of the power consumption of various implementations of blockchain technology, with special emphasis on the recent ‘‘Bitcoin Halving’’ and so-called ‘‘zk-rollups’’. We argue that although Bitcoin and other proof-of-work blockchains do indeed consume a lot of power, alternative blockchain solutions with significantly lower power consumption are already available today, and new promising concepts are being tested that could further reduce in particulary the power consumption of large blockchain networks in the near future. From this we conclude that although the criticism of Bitcoin’s power consumption is legitimate, it should not be used to derive an energy problem of blockchain technology in general. In many cases in which processes can be digitized or improved with the help of more energy-efficient blockchain variants, one can even expect net energy savings. [less ▲]

Industrial demand-side flexibility: A key element of a just energy transition and industrial development

in Applied Energy (2020)

In many countries, industry is one of the largest consumers of electricity. Given the special importance of electricity for industry, a reliable electricity supply is a basic prerequisite for further ... [more ▼]

In many countries, industry is one of the largest consumers of electricity. Given the special importance of electricity for industry, a reliable electricity supply is a basic prerequisite for further industrial development and associated economic growth. As countries worldwide transition to a low-carbon economy (in particular, by the development of renewable energy sources), the increasing fluctuation in renewable energy production requires new flexibility options within the electricity system in order to guarantee security of supply. It is advanced in this paper that such a flexibility transition with an active participation of industry in general has unique potential: It will not only promote green industrial development, but also become an engine for inclusive industrial development and growth as well as delivering a just transition to a low-carbon economy. Given the high potential of industrial demand-side flexibility, a first monitoring approach for such a flexibility transition is illustrated, which bases on a flexibility index. Our flexibility index allows for an indication of mis-developments and supports an appropriate implementation of countermeasures together with relevant stakeholders. Hence, it holds various insights for both policy-makers and practice with respect to how industrial demand-side flexibility can ensure advances towards an inclusive, just, and sustainable industrial development. [less ▲]