Introducing the Trust Diamond for Energy Flexibility Provision: On the Tension of Data Verifiability and Privacy

Abstract

Data sharing in a digitalized world is increasingly important, but its inherent tension between data verfiability and privacy limits stakeholders engagement. Data consumers need to confirm the data’s authenticity while providers fear privacy breaches. In the course of the sustainable Energy Transition, this tension also hinders the integration of small-scale flexibility devices in electricity grids. Grid operators must rely on verifiable data for secure operations, while device owners seek to ensure data protection and thus privacy. Based on Action Design Research, we develop a Flexibility Provision Data Flow and propose a conceptual Trust Diamond that leverages wallet-based identity management to ensure verifiability and privacy-preserving data sharing. We derive the design principles of Verifiability through Delegation and Derived Sovereignty and show their applicability for optimized grid operations. This study highlights the importance of Information Systems-based solutions to enhance data sharing and address trust concerns between stakeholders.