Zero-Knowledge Proofs to Verify Distributed Energy Resource (DER) Production, C56-01a

Coordination of distributed energy resources (DERs) to reduce carbon emissions can create an increased attack surface for cybersecurity attacks. Advances in quantum computing are creating extremely high risks to critical infrastructure data, even when encrypted. VIA proposes to leverage recent advances in zero-knowledge proofs (ZKPs) to provide a publicly verifiable source of DER carbon and energy changes. ZKPs created on premise at the DER source prevent the transmission of sensitive data. A new approach will be attempted to create a post-quantum ZKP. Phase I will focus on creating a ZKP specific to DER coordination using requirements gathered from one of the largest DER solution providers in the world, Enel X. The first approach will use a zk-SNARK implementation, widely used in cryptocurrencies. A zk-STARK implementation that would provide post-quantum cybersecurity resistance will also be attempted. Already, global DER companies have expressed keen interest in VIA’s proposed solution (see letter of support from Enel X). According to McKinsey, the global cybersecurity market is estimated at $2 trillion . VIA estimates 1 that the market for cyber secure coordination across vehicle, residential, commercial, and industrial DERs will be $9.7 billion annually by 2030. This time period coincides with advances in quantum computing that will require new approaches to securing DER data. DOE support to develop a post-quantum solution such as using zk-STARKs and a Phase II demonstration in DERs could set an example for post-quantum cybersecurity wherever decentralization is occurring. This includes other areas for ZKPs in energy (e.g., electric vehicles, hydrogen) and elsewhere in the Federal Government (e.g., logistics, supply chain, purchasing). 1. Create a ZKP for DERs: Based on the requirements from one of the world’s largest DER companies, Enel X, VIA will create a ZKP custom for DERs. With solutions spanning solar, wind, battery storage, electric vehicle charging, and the world’s largest demand response business, Enel X is an excellent proxy for industry-wide DER requirements. The initial ZKP may be specialized to meet the need of hyperscalers as the first end customer. VIA will create a zk-SNARK implementation and will also investigate the feasibility of a zk-STARK implementation. 2. Verify ZKP accuracy and privacy: VIA will work with Idaho National Laboratory (INL) to evaluate the accuracy of the DER-specific ZKP as well as the privacy claims of the ZKP. INL is a leader in the research and evaluation of control system security for distributed energy resource (DER) solutions such as battery storage. 3. Benchmark ZKP cost and response time performance: VIA will test and provide results to demonstrate the estimated cost and response time for the ZKP creator specific to DER ZKPs. If both zk-SNARK and zk-STARK implementations are successful, then a comparison of cost and performance times will be reported.