Energy Transition Handbook - Flipbook - Page 50
Hogan Lovells
50
Blockchain and energy
The global market for blockchain and associated technologies is estimated to be
between USD5.4 billion and USD28.4 billion. Blockchain provides a platform for the
disintermediated verification of data recorded on open and transparent ledgers.
In the energy sector, blockchain offers the
potential to disrupt existing business models
and platforms for:
•
electric vehicles charging
infrastructure availability
•
consumption, generation and aggregation/
grid balancing services
•
energy trading
•
electricity network balancing and
imbalance settlement
•
enhanced, real-time and remote
asset management
•
trading renewable certificates and
emissions allowances
•
•
customer billing and payment processing
selling anonymised system data to feed big
data analysis and machine learning and
develop new product lines
Blockchain solutions can also facilitate new energy
sector business models such as
•
purchasing energy directly from generators
dis-intermediating the role of energy suppliers
•
purchasing energy from different suppliers in
close to real time
•
peer to peer community energy schemes
•
automated network balancing without a
physical system operator
•
accelerated imbalance settlement providing
close to real time reliability of system data
•
faster customer switching and onboarding
•
aggregating smart devices and generation,
storage and demand assets
Blockchain solutions face a number of barriers to
entry however including
•
challenges to their ability to perform
verification in close to real time
•
how energy system costs and support
mechanism costs would be allocated without
an intermediary
•
high cost and barriers to changing existing
systems even if blockchain can offer more
agile, lower cost and/or more secure solutions
•
the size of the proof of work carbon footprint,
which for Bitcoin generates as much CO2
a year as 1 million transatlantic flights and
more power than Republic of Ireland and
where the financial incentives to mine and
consume power increase as the value of
Bitcoin rises