Decentralized energy: A reading list of resources
A couple years ago, I highlighted decentralized energy as one of the big ideas I was personally excited about where blockchains and crypto could make a difference. Today, U.S. energy — a collection of highly regulated monopolies — is ripe for disruption, especially since most power grids are dated, centralized, and face other issues such as incentive problems. This makes it ripe for decentralization, which is the key benefit of crypto and blockchains.
We recently announced our investment in a decentralized protocol that allows developers to program the energy grid through distributed energy resources; for more on why that matters, check out the post and see below. As for my journey to this topic:
In 2020 I was part of our inaugural Crypto Startup accelerator, where I was focused on research towards building a decentralized Internet Service Provider (ISP) — literally called project dISP. The goal was to apply the principles of incentive-driven decentralization to core internet infrastructure. Since the project itself didn’t work out, I joined Protocol Labs’ research team to focus on related work — and that’s where I first learned about decentralized energy, from one of the projects in our group that was researching how crypto could revamp our energy infrastructure.
Electricity is a resource that resists analogy — comparing it to water flowing through pipes, or information flowing through the internet isn’t quite right. Energy (that is, what electricity transmits) exists in everything, everywhere, all at once. Electrons are used right at the moment of generation, and electricity is difficult to move or store. These attributes make the electricity grid a unique network. But there’s still plenty we can learn about network design from this special case.
Our grid in the U.S. is a marvel — constructed far before the advances of modern times — and we take its architecture for granted. It’s actually the result of many accidents, so evolved in a very messy way. And even if you aren’t inherently interested in the minutiae of how it came to be and how it works today, the topic gives us an appreciation for the networks that power our daily lives.
So below are some of the books, blogs, podcasts, reports, and code that helped shaped my interest in, and understanding of, energy as it relates to crypto. I’m sharing it here so others can explore this complex topic. Whether it’s to learn more about other kinds of networks — or because you’re interested in atoms not just bits — there’s something in here for anyone who is curious about infrastructure.
Understanding decentralized energy: Reading list
- Protocol Labs’ Decentralized Energy Project got me interested in the category, and it has done the best early work with which I’m aware.
- Escape Velocity Ventures (EV3) writes some of the best market research in crypto, and their work on decentralized energy is no exception.
- a16z investment partner Ryan McEntush is one of the smartest people I know, and his writing on energy continually inspires in me a great optimism for the future of the American grid.
Understanding the energy market: Reading list
- Solar Market Insight Report 2023 (report)
- A summary on solar adoption, and its broad impact on the energy market.
- Rooftop Solar and Home Batteries (blog)
- How solar contributes as a distributed energy resource, and why it matters.
- Inflation Reduction Act Guide for Homeowners (blog)
- Guide to the Inflation Reduction Act (report)
- A great breakdown on recent regulation relevant for many homeowners, and an example of how regulation can effectively influence market structure.
- Lessons from Plaid for a future energy unicorn (blog)
- A discussion about composability between energy devices, and why it’s so important.
- Buildings as Power Plants (blog)
- An excellent explanation of why virtual power plants matter, and how we’ll build them, from the ground up.
- Age of Miracles (podcast and blog)
- Packy McCormick is always inspiring, but his recent work on nuclear energy makes one of the clearest arguments for both building more nuclear energy and a brighter future.
- Tesla Master Plan Part 3 (report)
- Tesla’s plan to solve the energy crisis through electrification.
Understanding the bigger picture: Book list
- Empires of Light: Edison, Tesla, Westinghouse, and the Race to Electrify the World by Jill Jonnes (2004)
- Gripping. A tale about the original battle for electrical supremacy. If you enjoy learning about great tech contests — early automobile competition, the browser wars, or the battle for smart contract platform supremacy — you’ll love this book.
- The Grid: The Fraying Wires Between Americans and Our Energy Future by Gretchen Bakke (2016)
- The best overview of our modern electrical grid and how we got here. Listen to the audiobook.
- Handbook on Electricity Markets by Jean-Michel Glachant, Paul L. Joskow, Michael G. Pollitt (2021)
- See chapters 2–5 on general history and market mechanics, and chapters 12–17 for emerging grid technologies and business models.
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