The recently launched O-CEI large scale pilot project in collaboration with the Internet of Things Unit of DG Connect (European Commission), and CEI-Sphere organised an online workshop with over 140 stakeholders that looked at solutions for Digital ID management and data governance in the cloud-edge-IoT continuum. In particular, the session explored how emerging edge systems and distributed ledger technologies (DLTs) can support secure and trusted interactions between connected energy assets and the electricity grid.
Context: the need for Digital Identity in the energy transition
The European Commission’s Competitiveness Compass outlines a joint roadmap for a competitive and green transition of key European industries like transport, buildings or energy and the expansion of new, climate-friendly technologies. However, to achieve the targets, innovation and policies would have to be coordinated across these different domains. The Competitiveness Compass emphasises the need to reduce administrative burdens by at least 25% for companies and 35% for small and medium-sized enterprises, aiming to foster a more conducive environment for innovation and competitiveness. Additionally, it proposes the development of an Affordable Energy Action Plan to lower energy prices and costs, facilitating the integration of distributed energy resources (DERs) such as electric vehicles and heat pumps. Ensuring seamless and trusted integration of these assets into energy markets requires robust digital identity frameworks that comply with evolving regulations, such as the Digital Product Passport (DPP) and network codes for demand-side flexibility. Edge computing emerges as a pivotal solution to address these challenges by processing data closer to the source, thereby reducing latency and enhancing real-time responsiveness. This localised data processing enables more efficient monitoring and management of DERs, contributing to grid stability and optimised energy consumption
Workshop highlights: advancing digital ID solutions
Building upon the insights from the November 2024 INSTAR and CEI-Sphere Workshop on Cross-Domain Standardisation and Architecture for IoT and Edge Computing, which emphasised the importance of interoperability and international cooperation in standardisation efforts, the recent online workshop on 'Digital ID management and data governance through emerging edge-IoT and DLT solutions' further explored practical solutions and governance frameworks to be deployed within O-CEI.
For the diverse and growing class of energy assets to engage with the grid in a trusted manner, the online workshop explored practical solutions and governance frameworks to be deployed within OCEI. This included among others; ID management, distributed ledger, digital wallet, self-sovereign identity (SSI). For the Horizon Europe-backed pilot, the deployment of novel solutions in the industrial and prosumer energy market necessitates easy on-boarding of IoT and edge devices and connected energy assets, specifically, as well as a trusted data exchange that meets evolving regulatory demands like Digital Product Passport (DPP) or a network code for demand side flexibility.
To meet our shared goals for a secure and decarbonised energy system, a large investment is required to modernise the existing energy system to enable the integration and onboard at scale the number of flexibility and generation assets. With this, the scale of complexity of data and information will require a mass integration of new digital technologies and solutions to address greater automation, efficiencies while preserving security, trust and the privacy of the individual. This new paradigm poses new challenges, requiring a new way of thinking about ways for decentralisation, for example.
Presented solutions
During the workshop, several solutions were presented to enhance digital identity management and data governance in the energy sector, including
DPP4.0: proposed as a tool for distributed asset management and the creation of digital twins , especially in the manufacturing domain. However, its application within the existing legacy standards of energy systems remains underexplored.
Asset Administration Shell (AAS): originating from the manufacturing domain, AAS facilitates the association of asset credentials, providing a standardised digital representation of assets. Its potential transferability to the energy sector could enhance interoperability and asset management.
Distributed Ledger Technologies (DLTs): Companies like IOTA and Powerledger have promoted the use of DLTs in the energy sector, particularly within energy communities. These solutions open new possibilities in e.g. microgrid management, aggregation of distributed resources, peer-to-peer trading, integration of electromobility, tamper-proof settlement and transactions. However, to benefit from those new possibilities, challenges related to the governance and maintenance of a distributed ledger infrastructure have to be addressed in addition to cultural shifts, as most current regulatory files strongly impose central registries and data repositories. Panellists claimed that DLT solutions have been largely demonstrated either as pilots or mainly as small-scale applications (e.g., supply chain sector, sustainability trackers etc.), and that traditional incumbents do not recognise modernization value replacing long-outdated systems.
Core takeaways
Interoperability: the integration of digital identity solutions across diverse energy assets requires interoperable frameworks to ensure seamless communication and data exchange.
Regulatory Alignment: adapting existing regulations to accommodate decentralised technologies like DLTs is crucial for their broader adoption in the energy sector.
Scalability: while pilot projects demonstrate potential, scaling these solutions necessitates addressing technical, regulatory, and cultural challenges.
Security and Trust: robust security measures are needed to protect data integrity and build trust among stakeholders in the energy ecosystem.
The Way Forward
While IoT Platforms can connect flexible assets - EVs, heat pumps, etc., integrating the energy sector with mobility and buildings to enhance access to affordable green energy and reduce carbon footprints, interoperability issues remain. Different IoT devices often use various communication protocols and standards, making it challenging to ensure seamless integration and trusted identification across platforms and domains.
As a part of the Commission’s strategy on IoT and Edge Computing, the workshop explored opportunities for foster collaboration across the above-mentioned sectors, looking for concrete suggestions and support in the implementation of upcoming pilots on emerging Smart IoT Platforms and decentralised intelligence. The project O-CEI that has been kicked-off in January 2025, will pilot cutting-edge solutions to drive cross-domain standards for flexible energy solutions by orchestrating cross-domain data sharing, minimising energy footprint, and promoting open standards for virtualisation and interoperability. For further information on the portal From Cloud to Edge to IoT.
The O-CEI pilot project will investigate the usefulness of DLT-based applications for both ID management, trusted data sharing tamper-proof transactions and to find out whether DLT solutions are appropriate for the envisaged use cases. In that context the following key aspects are to be clarified:
Do the benefits of DLT solutions justify the complexity of deployment and the scaling challenges?
How can DLT compete with centralised solutions and what are the main applications leveraging decentralised asset management through distribution and built-in trust?
What information or data points have to be included into an immutable ledger?
Do evolving regulatory and legal frameworks, relevant codes of conducts, and guidelines favour DLT-type of instantiations?
Data is an essential resource connecting energy and mobility services – the Commission support adoption of key building blocks like identification, authentication, data access and data exchange through a deployment action under the Digital Europe Programme for Common Energy Data Spaces in 2024.
About OCEI
As a Horizon Europe Innovation Action program, O-CEI aims to create an open CEI platform with a strong focus on interoperability, security, and reliability, making it easier for different sectors to collaborate and share data in real-time. This will enable faster, more accurate predictions in energy flexibility, helping industries to become more adaptable to energy demands. The O-CEI project unites 58 partners from 20 countries, including key industrial players, academic institutions, research organizations, SMEs, and a non-profit organisations. The consortium will develop 8 pilots in six core domains: electricity grids, agriculture and agrifood, mobility, urban areas, telco and logistics.
About CEI-Sphere
CEI-Sphere, a Horizon Europe initiative started in October 2024 to support O-CEI and Cloud-Edge-IoT Large-Scale Pilots, plays a key role in facilitating interoperability and trusted data governance across sectors. By aligning digital identity frameworks for energy, mobility, and smart infrastructure, it supports the need for emerging solutions to comply with evolving regulatory and standardisation frameworks. For updates on the pilots and the topics discussed, visit ceisphere.eu and follow the EUCloudEdgeIoT LinkedIn page.
Glossary
Asset Administration Shell (AAS): A standardised digital representation of an asset, originating from the manufacturing sector, that facilitates the association of asset credentials and enhances interoperability.
Competitiveness Compass: A strategic roadmap developed by the European Commission outlining the transition of key European industries towards competitiveness and environmental sustainability
Digital Identity: The online representation of an entity, including personal information and ancillary data, used for authentication and authorisation purposes in digital interactions.
Digital Wallet: A software application, electronic device, or online service that securely stores payment information, such as credit and debit card details, enabling users to conduct electronic transactions without physical cards.
Digital Product Passport (DPP): A digital record providing detailed information about a product's lifecycle, components, and sustainability attributes, to enhance transparency and compliance with environmental regulations.
Distributed Energy Resources (DERs): Small-scale energy generation or storage technologies, such as solar panels, wind turbines, and battery storage systems, that are connected to the grid and can operate independently or in conjunction with the main power supply.
Distributed Ledger Technologies (DLTs): Decentralised databases managed by multiple participants, where transactions are recorded in a secure, transparent, and immutable manner. Blockchain is a prominent example of DLT.
Edge Computing: A computing paradigm that processes data near the source of generation, reducing latency and enhancing real-time responsiveness.
Internet of Things (IoT): A network of interconnected physical devices embedded with sensors and software, enabling them to collect and exchange data over the internet.
Self-Sovereign Identity (SSI): A digital identity model where individuals or entities have ownership and control over their personal data, managing it through digital wallets without reliance on a central authority.