Changing power: Shifting the role of electricity consumers with blockchain technology – Policy implications for EU electricity law

Diestelmeier, Lea

doi:10.1016/j.enpol.2018.12.065

Cited by 94 publications

(79 citation statements)

References 29 publications

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“…Based on the blockchain application areas suggested in the literature, we select three dominant energy efficiency use cases to test whether a blockchain application is feasible and outline a possible blockchain design. The selected cases are P2P energy trading, as it is by far the most prominent research topic within the energy trading systems [15][16][17][18][19][20][21][23][24][25][26][27][28][29][30]. We consider P2P energy trading as a valid case, as the inserting of renewable energy increases system efficiency, particularly regarding the significant potential of IoT devices to improve grid and load management [15,30,49,62,63].…”

Section: Use Case Analysismentioning

confidence: 99%

“…In the context of energy efficiency, the literature suggests blockchain technology to be relevant in mainly three application areas. First, blockchain could enable innovative energy trading systems, such as P2P energy trading [15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30], electric vehicle charging [15,31] and energy markets [22,27,[32][33][34][35]. Second, blockchain could serve as a distributed accounting and trading platform for the energy efficiency White Certificate Schemes (WCS) [15].…”

Section: Introductionmentioning

confidence: 99%

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How Can Blockchain Technology Accelerate Energy Efficiency Interventions? A Use Case Comparison

et al. 2020

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This paper qualitatively evaluates the application of blockchain technology for three energy efficiency use cases. To achieve the Sustainable Development Agenda, energy efficiency improvements have to double by 2030. However, the adoption of energy efficiency interventions is slow due to several market barriers. Blockchain technology is a nascent technology with the potential to address these barriers or even fundamentally change energy system designs, by enabling transparent, decentralised, and tamper-resilient systems. Nevertheless, a blockchain application comes with trade-offs and needs to be considered on a case by case basis. In this paper, we examine the benefits and constraints of a blockchain application for three different approaches to achieving energy efficiency: (i) peer-to-peer (P2P) energy trading; (ii) White Certificate Scheme (WCS); and (iii) Energy Service Companies (ESCOs). For each of these cases, we apply a decision framework to assess blockchain feasibility and outline a potential blockchain-based design. The analysis shows that blockchain functions are case dependent and that an application creates different governance and system designs due to varying case characteristics. We discuss how the identified blockchain adoption barriers can be overcome and stress the need for policy action to advance the development of pilot studies. By decentralising system governance, blockchain enables innovative designs that can accelerate the implementation of energy efficiency interventions.

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Section: Use Case Analysismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How Can Blockchain Technology Accelerate Energy Efficiency Interventions? A Use Case Comparison

et al. 2020

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“…This new technology, born as a service for providing a counterparty-less banking system, provides a way to ensure validated and immutable transactions on a ledger distributed among various peers on an information network, and allows the settlement of economic transactions in a trustless fashion. Pushed by the technological advances in this field, more and more research efforts in recent years have been directed towards the integration of electricity P2P markets and DL technologies [14,18,23,24]. Papers [14,17,24,25] have theorized and experimentally investigated blockchain-based local P2P electricity markets, in which peers settle the energy transfers with cryptocurrencies created ad hoc.…”

Section: Introductionmentioning

confidence: 99%

Distributed Ledger Technologies for Peer-to-Peer Local Markets in Distribution Networks

et al. 2019

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The newest Distributed Ledger Technology platforms, which delegate the execution of complex tasks in the form of Smart Contracts, make it possible to devise novel local electricity market frameworks, which are performed in a fully automated fashion. This paper proposes a novel fully automated platform for energy and ancillary service markets in distribution networks, able to run in a decentralized fashion, bypassing the need for a physical central authority. The proposed platform, able to perform the role of Virtual Decentralized Market Authority, shows excellent potential applications in the management of local ancillary service markets in local energy communities of various sizes. The proposed Virtual Decentralized Market Authority showed reasonable running costs and comparable technical management capabilities with respect to a physical, centralized managing authority.

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“…Policy‐makers around the world are therefore intrigued by blockchain technologies and are beginning to explore their potential to solve public policy problems (Alketbi et al ., ). This exploration extends to climate action and electricity and carbon markets where there is enthusiasm for the role blockchain could play (Green & Newman, ; United Nations Climate Change, , ; Dong et al ., ; Diestelmeier, ).…”

Section: Introductionmentioning

confidence: 99%

“…Ultimately, however, blockchain's potential is driving the exploration of new use cases, including electricity and carbon markets (e.g. Diestelmeier, ).…”

Section: Introductionmentioning

confidence: 99%

Applying Blockchain to the Australian Carbon Market

Hartmann

Schierl

2019

J of App Econs and Policy

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Blockchain is a distributed digital ledger system that establishes transparent contract processes and facilitates secure but trusted business transactions. Policy-makers around the world are intrigued by the potential of this emerging technology to solve policy problems, including the challenges of the transition away from centralised, linear models of energy generation and consumption towards decentralised and distributed energy systems. Blockchain has also been promoted as a mechanism to transform carbon markets, yet the focus in this area to date has been on using blockchain to create new carbon market schemes. This paper addresses an important research gap by asking how blockchain could be applied to an existing carbon market. To answer this question, the study uses an established design process to develop an Australian carbon market blockchain design. The paper finds that this design could improve the efficiency, equity and effectiveness of the Australian carbon market. This paper makes an important research contribution to carbon market policy development by developing a blockchain design that could improve how an existing carbon market functions, and the findings presented here are relevant to government and industry stakeholders globally.

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Changing power: Shifting the role of electricity consumers with blockchain technology – Policy implications for EU electricity law

Cited by 94 publications

References 29 publications

How Can Blockchain Technology Accelerate Energy Efficiency Interventions? A Use Case Comparison

How Can Blockchain Technology Accelerate Energy Efficiency Interventions? A Use Case Comparison

Distributed Ledger Technologies for Peer-to-Peer Local Markets in Distribution Networks

Applying Blockchain to the Australian Carbon Market

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