A digital transformation
The client sought to transform its process for calculating and distributing Low Carbon Fuel Standard (LCFS) credits for electric vehicle (EV) owners using digital solutions. The existing process for the LCFS program involved manually tracking and approving credits, making it difficult to integrate new use cases like EV charging. An automated solution would enable an enhanced customer experience and increase participation in the LCFS program by EV owners. Choosing the right technology solution involved assessing technologies that would address the highly distributed nature of EV charging. Blockchain was identified as a nascent and promising technology for distributed transaction scenarios, and the client set out to obtain a proof-of-concept blockchain application for LCFS credits.
Activating innovative technologies while working under a tight budget and time frame
The West Monroe team collaborated with the client to design representative use cases for EV charging and digitized the process to capture EV charging events by a novel blockchain application. The solution was designed to seamlessly calculate and generate LCFS credits in the form of digital tokens. The application includes a visual user interface to provide a dashboard of the potential benefits.
The team designed a proof-of-concept blockchain solution that digitizes and automates the previously paper-based credit tracking process. West Monroe led a series of collaborative brainstorming sessions to refine use cases and designed a method to capture real-time data from EV chargers and smart solar inverters. West Monroe engineers used cloud software to aggregate EV and solar generation data into an Ethereum-based blockchain application, which uses smart contracts that calculate LCFS eligibility for customer charging sessions. The West Monroe team designed and developed a web-accessible app that visualizes relevant data providing a convenient user experience for the stakeholders involved.
A scalable proof of concept and path forward
The application is able to seamlessly mint LCFS credits in the form of tokens that are compliant with the California Air Resources Board (CARB) requirements. Designed to calculate and generate LCFS credits using real-time grid mix data and local renewable generation, credit calculations now more accurately reflect the renewable energy used at the time of charging. These tokens are automatically transferred to the wallet associated with a specific customer account.
Finally, and perhaps most importantly, these tokens can act as an incentive to influence customers to adapt charging to align to the utility’s grid need.