The Impact of Blockchain on Future Business Models within the Renewable Energy Sector

Abstract

Blockchains, or distributed ledgers, are innovative information and communication technology (ICT) solutions that are emerging within various sectors and industries across the globe. This distributed ledger technology (DLT) is already widespread in certain sectors, mainly in the banking industry, often through corresponding banking, or syndicating and peer-to-peer (P2P) loans. Outstandingly, blockchain technology has the capability to enhance the transparency and authenticity of transactional processes throughout the whole supply chain. Another significant benefit that Blockchain technology provides, mainly coming from its transparent and decentralized nature, is the capability to decrease the information asymmetries among the collaborating partners. Through e.g. the digitalization of transactional mechanisms, decentralization of authority, Internet of Things (IoT) and asset management enabling as well as smart contracting, the improvement of the business's day-to-day operations is firmly forecasted. Importantly, the digitalization of the energy and other sectors will cause major alterations in current structures, and thus, it will require business model innovation. It is claimed that the decentralized nature of blockchain, mainly due to a reduction of middlemen could revolutionize current market structures and supply chains.Importantly, blockchain application is systematically growing across different industries, for instance in healthcare, voting systems, manufacturing, supply chain management, or luxury goods. It has also gained the attention of the energy industry, where digitalization is already visible in solutions such as smart meters and smart grids, electric e-mobility, vehicle-to-grid (V2G), energy cryptocurrencies and tokens, etc. This has resulted in the introduction of a novel concept of the Internet of Energy (IoE) in the academic literature. This literature analysis serves to determine the impact of blockchain on the imminent business models based on the renewable energy sector. The outcomes of this curiosity study provide numerous theoretical and managerial implications that can foster the widespread blockchain technology diffusion in global energy systems.