How Can Blockchain Technology Accelerate Energy Efficiency Interventions? A Use Case Comparison

Marco Schletz,Ana Cardoso,Søren Salomo,Gabriela Prata Dias

doi:10.3390/en13225869

Marco Schletz, Ana Cardoso + Show 2 more

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https://doi.org/10.3390/en13225869

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Abstract

This paper qualitatively evaluates the application of blockchain technology for three energy efficiency use cases. To achieve the Sustainable Development Agenda, energy efficiency improvements have to double by 2030. However, the adoption of energy efficiency interventions is slow due to several market barriers. Blockchain technology is a nascent technology with the potential to address these barriers or even fundamentally change energy system designs, by enabling transparent, decentralised, and tamper-resilient systems. Nevertheless, a blockchain application comes with trade-offs and needs to be considered on a case by case basis. In this paper, we examine the benefits and constraints of a blockchain application for three different approaches to achieving energy efficiency: (i) peer-to-peer (P2P) energy trading; (ii) White Certificate Scheme (WCS); and (iii) Energy Service Companies (ESCOs). For each of these cases, we apply a decision framework to assess blockchain feasibility and outline a potential blockchain-based design. The analysis shows that blockchain functions are case dependent and that an application creates different governance and system designs due to varying case characteristics. We discuss how the identified blockchain adoption barriers can be overcome and stress the need for policy action to advance the development of pilot studies. By decentralising system governance, blockchain enables innovative designs that can accelerate the implementation of energy efficiency interventions.

Highlights

Accelerating the adoption of energy efficiency interventions is critical to meet two objectives: First, to double the global rate of improvement in energy efficiency by 2030, as put forward by the SustainableDevelopment Agenda [1]
The analysis conducted in this paper shows that each blockchain application varies and is defined by the requirements of each use case
We show that a blockchain application for accelerating energy efficiency interventions is promising

Summary

Introduction

Accelerating the adoption of energy efficiency interventions is critical to meet two objectives: First, to double the global rate of improvement in energy efficiency by 2030, as put forward by the SustainableDevelopment Agenda [1]. Accelerating the adoption of energy efficiency interventions is critical to meet two objectives: First, to double the global rate of improvement in energy efficiency by 2030, as put forward by the Sustainable. The most significant reduction in global greenhouse gas emissions is expected to come from energy efficiency savings [3]. The adoption of efficiency interventions is stalling as the primary energy intensity only improved by 1.2% in 2018, which is the lowest growth rate since 2010 [4]. The number of technical efficiency improvements almost halved between 2015 and 2018 [4]. This progress is insufficient for meeting the goals of the Paris

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