diff --git a/src/frequenz/core/id.py b/src/frequenz/core/id.py
new file mode 100644
index 0000000..2010948
--- /dev/null
+++ b/src/frequenz/core/id.py
@@ -0,0 +1,194 @@
+# License: MIT
+# Copyright © 2025 Frequenz Energy-as-a-Service GmbH
+
+r'''Provides strongly-typed unique identifiers for entities.
+
+This module offers a base class, [`BaseId`][frequenz.core.id.BaseId], which can be
+subclassed to create distinct ID types for different components or concepts within
+a system.
+
+These IDs ensure type safety, meaning that an ID for one type of entity (e.g., a
+sensor) cannot be mistakenly used where an ID for another type (e.g., a
+microgrid) is expected.
+
+# Creating Custom ID Types
+
+To define a new ID type, create a class that inherits from
+[`BaseId`][frequenz.core.id.BaseId] and provide a unique `str_prefix` as a keyword
+argument in the class definition. This prefix is used in the string representation of
+the ID and must be unique across all ID types.
+
+Note:
+    The `str_prefix` must be unique across all ID types. If you try to use a
+    prefix that is already registered, a `ValueError` will be raised when defining
+    the class.
+
+To encourage consistency, the class name must end with the suffix "Id" (e.g.,
+`MyNewId`). This check can be bypassed by passing `allow_custom_name=True` when
+defining the class (e.g., `class MyCustomName(BaseId, str_prefix="MCN",
+allow_custom_name=True):`).
+
+Tip:
+    Use the [`@typing.final`][typing.final] decorator to prevent subclassing of
+    ID classes.
+
+Example: Creating a standard ID type
+    ```python
+    from typing import final
+    from frequenz.core.id import BaseId
+
+    @final
+    class InverterId(BaseId, str_prefix="INV"):
+        """A unique identifier for an inverter."""
+
+    inv_id = InverterId(123)
+    print(inv_id)       # Output: INV123
+    print(int(inv_id))  # Output: 123
+    ```
+
+Example: Creating an ID type with a non-standard name
+    ```python
+    from typing import final
+    from frequenz.core.id import BaseId
+
+    @final
+    class CustomNameForId(BaseId, str_prefix="CST", allow_custom_name=True):
+        """An ID with a custom name, not ending in 'Id'."""
+
+    custom_id = CustomNameForId(456)
+    print(custom_id)       # Output: CST456
+    print(int(custom_id))  # Output: 456
+    ```
+'''
+
+
+from typing import Any, ClassVar, Self, cast
+
+
+class BaseId:
+    """A base class for unique identifiers.
+
+    Subclasses must provide a unique `str_prefix` keyword argument during
+    definition, which is used in the string representation of the ID.
+
+    By default, subclass names must end with "Id". This can be overridden by
+    passing `allow_custom_name=True` during class definition.
+
+    For more information and examples, see the [module's
+    documentation][frequenz.core.id].
+    """
+
+    _id: int
+    _str_prefix: ClassVar[str]
+    _registered_prefixes: ClassVar[set[str]] = set()
+
+    def __new__(cls, *_: Any, **__: Any) -> Self:
+        """Create a new instance of the ID class, only if it is a subclass of BaseId."""
+        if cls is BaseId:
+            raise TypeError("BaseId cannot be instantiated directly. Use a subclass.")
+        return super().__new__(cls)
+
+    def __init_subclass__(
+        cls,
+        *,
+        str_prefix: str,
+        allow_custom_name: bool = False,
+        **kwargs: Any,
+    ) -> None:
+        """Initialize a subclass, set its string prefix, and perform checks.
+
+        Args:
+            str_prefix: The string prefix for the ID type (e.g., "MID").
+                Must be unique across all ID types.
+            allow_custom_name: If True, bypasses the check that the class name
+                must end with "Id". Defaults to False.
+            **kwargs: Forwarded to the parent's __init_subclass__.
+
+        Raises:
+            ValueError: If the `str_prefix` is already registered by another
+                ID type.
+            TypeError: If `allow_custom_name` is False and the class name
+                does not end with "Id".
+        """
+        super().__init_subclass__(**kwargs)
+
+        if str_prefix in BaseId._registered_prefixes:
+            raise ValueError(
+                f"Prefix '{str_prefix}' is already registered. "
+                "ID prefixes must be unique."
+            )
+        BaseId._registered_prefixes.add(str_prefix)
+
+        if not allow_custom_name and not cls.__name__.endswith("Id"):
+            raise TypeError(
+                f"Class name '{cls.__name__}' for an ID class must end with 'Id' "
+                "(e.g., 'SomeId'), or use `allow_custom_name=True`."
+            )
+
+        cls._str_prefix = str_prefix
+
+    def __init__(self, id_: int, /) -> None:
+        """Initialize this instance.
+
+        Args:
+            id_: The numeric unique identifier.
+
+        Raises:
+            ValueError: If the ID is negative.
+        """
+        if id_ < 0:
+            raise ValueError(f"{type(self).__name__} can't be negative.")
+        self._id = id_
+
+    @property
+    def str_prefix(self) -> str:
+        """The prefix used for the string representation of this ID."""
+        return self._str_prefix
+
+    def __int__(self) -> int:
+        """Return the numeric ID of this instance."""
+        return self._id
+
+    def __eq__(self, other: object) -> bool:
+        """Check if this instance is equal to another object.
+
+        Equality is defined as being of the exact same type and having the same
+        underlying ID.
+        """
+        # pylint thinks this is not an unidiomatic typecheck, but in this case
+        # it is not. isinstance() returns True for subclasses, which is not
+        # what we want here, as different ID types should never be equal.
+        # pylint: disable-next=unidiomatic-typecheck
+        if type(other) is not type(self):
+            return NotImplemented
+        # We already checked type(other) is type(self), but mypy doesn't
+        # understand that, so we need to cast it to Self.
+        other_id = cast(Self, other)
+        return self._id == other_id._id
+
+    def __lt__(self, other: object) -> bool:
+        """Check if this instance is less than another object.
+
+        Comparison is only defined between instances of the exact same type.
+        """
+        # pylint: disable-next=unidiomatic-typecheck
+        if type(other) is not type(self):
+            return NotImplemented
+        other_id = cast(Self, other)
+        return self._id < other_id._id
+
+    def __hash__(self) -> int:
+        """Return the hash of this instance.
+
+        The hash is based on the exact type and the underlying ID to ensure
+        that IDs of different types but with the same numeric value have different hashes.
+        """
+        return hash((type(self), self._id))
+
+    def __repr__(self) -> str:
+        """Return the string representation of this instance."""
+        return f"{type(self).__name__}({self._id!r})"
+
+    def __str__(self) -> str:
+        """Return the short string representation of this instance."""
+        return f"{self._str_prefix}{self._id}"
diff --git a/tests/test_id.py b/tests/test_id.py
new file mode 100644
index 0000000..30916b9
--- /dev/null
+++ b/tests/test_id.py
@@ -0,0 +1,69 @@
+# License: MIT
+# Copyright © 2025 Frequenz Energy-as-a-Service GmbH
+
+"""Tests for IDs."""
+
+from typing import final
+
+import pytest
+
+from frequenz.core.id import BaseId
+
+
+@final
+class _TestId(BaseId, str_prefix="TEST_ID"):
+    """A test ID class that inherits from BaseId."""
+
+
+@final
+class _TestId2(BaseId, str_prefix="TEST_ID2", allow_custom_name=True):
+    """Another test ID class that inherits from BaseId."""
+
+
+def test_valid() -> None:
+    """Test creating a valid ID."""
+    id_obj = _TestId(42)
+    assert int(id_obj) == 42
+
+
+def test_negative_raises() -> None:
+    """Test that creating a negative ID raises ValueError."""
+    with pytest.raises(ValueError, match="_TestId can't be negative"):
+        _TestId(-1)
+
+
+def test_equality() -> None:
+    """Test equality comparison."""
+    assert _TestId(1) == _TestId(1)
+    assert _TestId(1) != _TestId(2)
+    assert _TestId(1) != _TestId2(1)
+
+
+def test_ordering() -> None:
+    """Test ordering comparison."""
+    assert _TestId(1) < _TestId(2)
+    # Not unnecessary as BaseId only provides the __lt__ method
+    assert not _TestId(2) < _TestId(1)  # pylint: disable=unnecessary-negation
+
+    # Test against other types
+    with pytest.raises(TypeError):
+        _ = _TestId(1) < _TestId2(2)
+
+
+def test_hash() -> None:
+    """Test hash behavior."""
+    # Same IDs should hash to same value
+    assert hash(_TestId(1)) == hash(_TestId(1))
+    # Different IDs should hash to different values
+    assert hash(_TestId(1)) != hash(_TestId(2))
+
+    # Same ID but different types should hash to different values
+    # (note this test might be flaky, as a hash collision could occur)
+    assert hash(_TestId(1)) != hash(_TestId2(1))
+
+
+def test_str_and_repr() -> None:
+    """Test string representations."""
+    id_obj = _TestId(42)
+    assert str(id_obj) == "TEST_ID42"
+    assert repr(id_obj) == "_TestId(42)"