Energy Transition Handbook - Flipbook - Page 52
52
Hogan Lovells
Energy Transition Handbook 2022
Blockchain and energy
ESG and you – making the complex manageable
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
verifi ation of data recorded on open and transparent ledgers.
Environmental, social, and governance considerations are driving signifi ant
change for every single organization – but identifying and effectively
managing the right mix varies greatly from company to company. We
combine cutting-edge understanding of the diverse issues at play with
our vast global experience across a wide range of industries to craft
the right solution to your unique ESG focus, whatever it may be.
In the energy sector, blockchain offers the
potential to disrupt existing business models
and platforms for:
• e nergy trading
• electricity network balancing and imbalance
settlement
• trading renewable certificates and emissions
allowances
• customer billing and payment processing
Blockchain solutions can also facilitate new
energy sector business models such as
urchasing energy directly from generators
• p
dis-intermediating the role of energy suppliers
• p
urchasing energy from different suppliers
in close to real time
• peer to peer community energy schemes
• a
utomated network balancing without a
physical system operator
• a
ccelerated imbalance settlement providing
close to real time reliability of system data
• faster customer switching and onboarding
• a
ggregating smart devices and generation,
storage and demand assets
• e lectric vehicles charging infrastructure
availability
• c onsumption, generation and aggregation/
grid balancing services
• e nhanced, real-time and remote asset
management
• s elling anonymised system data to feed big
data analysis and machine learning and
develop new product lines
Blockchain solutions face a number of barriers to
entry however including
• c hallenges to their ability to perform verification
in close to real time
• h
ow energy system costs and support
mechanism costs would be allocated
without an intermediary
• h
igh cost and barriers to changing existing
systems even if blockchain can offer more agile,
lower cost and/or more secure solutions
• t he 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
Our tools
Our cross-functional team has created a number of free resources for you to use, including:
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guide to current trends in ESG
A
A guide to current ESG regulations
An app to help you determine whether your business is fit for purpose
A diagnostic to help you assess how ready you are for a crisis
A guide to ESG issues for consumer companies
A video guide on ESG issues for Real Estate companies
A guide to global issues and regulation in offshore wind
Thought leadership on sustainable investing
Thought leadership on ESG issues in UK2030
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