Applying the blockchain technology to promote the development of distributed photovoltaic in China

Abstract

Summary Access to energy has increasingly been provided by the Chinese Government via new alternative energy sources known as renewables in recent years. Meanwhile, the development and use of environmentally friendly renewables gradually become the basic requirements for the sustainable development in the future society. The integration of blockchain technology with distributed photovoltaic (PV) energy may break the existing pattern where the production, transportation, distribution, and sales of energy are centralized. This paper first reviews the current overall situation of China's distributed PV and further analyzes the policy environment with respect to the development of distributed PV. On the basis of the analysis of the status quo, the paper then discusses the internalities (strengths and weaknesses) and the externalities (opportunities and threats) that have driven the development of China's distributed PV by illustrating the SWOT analysis. The data structure and characteristics of blockchain are analyzed to identify the application mode of blockchain technology in the distributed PV industry for the first time. Through our research, some conclusions and policy proposals are finally put forward to provide support to the formulation of related policy in the Chinese Government and industry association.

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“…Blockchain's smart contract is a computer script that provides terms and conditions, which binds participants and also transfers digital currencies or assets between participants. Smart contract provides enforcement, and minimizes contract signing and regulatory costs [48].…”

“…Financing distributed and decentralized SHS's startups project is tedious due to inadequate financing and lack of trust between participants. Energy brokers with high credibility are unable to review the process of authenticating the system due to high cost of processing long-time contract rules [48]. The consensus mechanisms of blockchain establish trust and participants' contract rules can be unanimously processed and validated.…”

“…Smart meters installed in the residential homes of all prosumers and consumers provide the first proof of their work for energy consumed or sold. Without the blockchain, there is an issue of inaccurate metering of prosumers caused by substandard measuring devices, information losses during transmission, and lack of focus by the data entry staffs [48]. Blockchain provides a digital precision of the smart meters' data and management.…”

“…Blockchain creates a trustless environment and establishes P2P trading market without the trust endorsement of a third party. Therefore, it reduces the difficulty of unifying industrial standards [48].…”

Blockchain Enhanced Emission Trading Framework in Fashion Apparel Manufacturing Industry

“…For example, decentralized solutions using blockchain peer-to-peer systems for managing demand response programs were proposed to improve current energy grid operations (e.g., [25,26]). The same method was applied to promote clean energy such as solar photovoltaic (PV) in China [27].…”