Blockchain in the Energy Sector

Strüker, Jens; Albrecht, Simon; Reichert, Stefan

doi:10.1007/978-3-319-99058-3_2

Cited by 12 publications

(17 citation statements)

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“…A considerable number of papers explore distributed ledger technologies as the core enablers for automatized market platforms [64], [166]- [168]. In the context of local electricity markets, the literature principally focuses on the technical ICT features of blockchain [169]- [173].…”

Section: ) Literature Focus: Information and Communication Technologiesmentioning

confidence: 99%

Developments and Challenges in Local Electricity Markets: A Comprehensive Review

et al. 2021

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In recent years, power systems have undergone changes in technology and definition of the associated stakeholders. With the increase in distributed renewable generation and small-to medium-sized consumers starting to actively participate on the supply side, a suitable incorporation of decentralized agents into the power system is required. A promising scheme to support this shift is given by local electricity markets. These provide an opportunity to extend the liberal wholesale markets for electrical power found in Europe and the United States to the communal level. Compared to these more established markets, local electricity markets, however, neither have few practical implementations nor standardized frameworks. In order to fill this research gap and classify the types of local electricity markets, the presented paper therefore starts with the challenges that these markets attempt to solve. This is then extended to an analysis of the theoretical and practical background with a focus on these derived challenges. The theoretical background is provided in the form of an introduction to state-of-the-art models and the associated literature, whereas the practical background is provided in form of a summary of ongoing and recent projects on local electricity markets. As a result, this paper presents a foundation for future research and projects attempting to approach the here presented challenges in distribution of generation, integration of demand response, decentralization of markets and legal and social issues via local electricity markets.

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Section: ) Literature Focus: Information and Communication Technologiesmentioning

confidence: 99%

Developments and Challenges in Local Electricity Markets: A Comprehensive Review

et al. 2021

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“…Public (permissionless), private (permissioned) and consortium (shared-permission) blockchains can be distinguished (Albrecht et al , 2018; Strüker et al , 2019; Wu and Tran, 2018). In public blockchains, everyone is permitted to connect to the network and is given a random identification.…”

Section: Blockchain Technologymentioning

confidence: 99%

“…No central provider admitting new participants or supervising transactions is needed (Albrecht et al , 2018). Public blockchains rely on a proof-of-work consensus mechanism, where the so-called miners compete against each other in validating new blocks to earn a reward (Strüker et al , 2019). While a proof-of-work consensus mechanism is relatively time- and energy-consuming and, therefore, causes more pollution (Goodkind et al , 2020), the proof-of-stake mechanism is more efficient.…”

Section: Blockchain Technologymentioning

confidence: 99%

“…a single node generates new blocks. Transaction speeds are usually high, whereas energy consumption and system costs remain rather low (Albrecht et al , 2018; Strüker et al , 2019).…”

Section: Blockchain Technologymentioning

confidence: 99%

“…In the electricity sector, blockchain technology is an emerging technology, without extant broadband applications. However, many players are working on pilot projects (Burger et al , 2016; Reetz, 2019; Strüker et al , 2019). Such explorations include, for example, the Brooklyn Microgrid in the US and the Allgäu Microgrid in Germany.…”

Section: Introductionmentioning

confidence: 99%

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Powered by blockchain: forecasting blockchain use in the electricity market

Höhne

Tiberius

2020

IJESM

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Purpose The purpose of this study is to formulate the most probable future scenario for the use of blockchain technology within the next 5–10 years in the electricity sector based on today’s experts’ views. Design/methodology/approach An international, two-stage Delphi study with 20 projections is used. Findings According to the experts, blockchain applications will be primarily based on permissioned or consortium blockchains. Blockchain-based applications will integrate Internet of Things devices in the power grid, manage the e-mobility infrastructure, automate billing and direct payment and issue certificates regarding the origin of electricity. Blockchain solutions are expected to play an important big role in fostering peer-to-peer trading in microgrids, further democratizing and decentralizing the energy sector. New regulatory frameworks become necessary. Research limitations/implications The Delphi study’s scope is rather broad than narrow and detailed. Further studies should focus on partial scenarios. Practical implications Electricity market participants should build blockchain-based competences and collaborate in current pilot projects. Social implications Blockchain technology will further decentralize the energy sector and probably reduce transaction costs. Originality/value Despite the assumed importance of blockchain technology, no coherent foresight study on its use and implications exists yet. This study closes this research gap.

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