Blockchain for EU electricity market

Abstract

Electricity systems around the world are currently undergoing fundamental changes on two fronts, decarbonization and digitalization. The transition towards a low carbon economy means increased penetration and utilization of Renewable Energy Sources (RES) and the electrification of transport and other sectors. The expansion of Distributed Energy Resources (DERs), electricity grid storage, Electric Vehicles (EV's), the associated charging infrastructure, smart buildings and the upgraded ICT infrastructure, also provides opportunities for end-customers to play a more active role in the electricity markets. Blockchain technology can help avail these opportunities through innovative business models which are not just centered around the end-users but also in improving the overall market operation. Blockchain is a forward-looking technology that can significantly disrupt the way in which the electricity markets and its participants operate. The consensus based decision making, decentralized and distributed characteristics of blockchain technology render it well suited for a future energy system which is increasingly decentralized, distributed and with more active end-customers participating in the market. In this paper, we discuss in brief the blockchain technology outlook and its suitability for the future energy grid and market operation. We will also discuss how blockchain can help disrupt the energy sector and the associated challenges. Finally, we also provide our recommendation on what applications of blockchain in the energy sector we predict the biggest potential.