Blockchain Technology and Renewable Energy Access: A Case for sub-Saharan Africa

Abstract

As the developed world continues to advance technologically and closes the gap in deficiencies of existing economic, financial and environmentally ‘green’ systems, while consequently improving the socio-economic indices of their respective countries and citizens; a measure of introspection is not amiss in considering the challenges that beset their third world counterpart- Africa. The continent still struggles with issues that relate to energy poverty and overall access, as there are indicators that a large majority still have no access to modern, affordable and reliable energy services. The major constraints are identified as inadequate or unavailable financing, invalid or non-existent policies and largely unstable political environments. The SE4ALL mandate in accordance with the Paris Agreement stipulates the need for effective climate change policy, the imperative for improved energy efficiency and the need for inclusion. A dynamic approach is therefore required to provide energy access to the most vulnerable, especially in the rural and urban slums of sub-Saharan Africa. This paper suggests that blockchain technology is potentially that medium and therefore assesses the current advancements, challenges and its potential application within the regional energy context using the diffusion of innovation theory. The results suggest alternative platforms such as Iota being deployed in the near term, due to a lack of requisite network infrastructure and the financial handicap of the region. However, the emphasis on innovative and disruptive business models for harnessing renewable energy sources towards improved energy efficiency and overall socio-economic development, remains. The key is in the adoption of technology that is tailored specifically, towards a sustainable energy future for sub-Saharan Africa.