Blockchain Energy: Blockchain in Future Energy Systems

The ongoing, in-depth transformation of the electricity sector towards increased use of alternative, renewable energy sources extends beyond a simple decentralization drive in the electricity market. The transformation process is characterized by the interplay of old and new technologies from the energy sector as well as structural coupling with other sectors, such as the information and communications technology (ICT), enabling the technology transfer as well as market entry by information technology (IT) actors. Blockchain-based technologies have the potential to play a key role in this transition by offering decentralized interfaces and systems as well as an alternative approach to the current organization form of the energy market. This paper discusses the applicability and prospects for blockchain-based technologies in the energy sector, which are described using the term “blockchain energy”. For the purposes of this study, blockchain energy encompasses all socio-technical and organizational configurations in the energy sector based on the utilization of the blockchain principle for energy trading, information storage, and/or increased transparency of energy flows and energy services. In the following chapters, the authors present and discuss the current transformation in the electricity market, followed by a review of the different utilization possibilities for blockchain technologies in the energy sector and a discussion of the barriers and potential for blockchain energy using a transition studies perspective. Finally, the opportunities and risks of blockchain energy are discussed.