Blockchain Technology and Electricity Wholesale Markets: Expert Insights on Potentials and Challenges for OTC Trading in Europe

Carol Inoue Dick and Aaron Praktiknjo
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Carol Inoue Dick: TU-Campus EUREF, TU Berlin, Torgauer Str. 12-15, 10829 Berlin, Germany

Energies, 2019, vol. 12, issue 5, 1-25

Abstract: In this manuscript, we investigate the adoption of blockchain for over-the-counter (OTC) electricity wholesale trading under the EU regulatory framework. Our analysis of the core legislation reveals six potential issues: (1) data immutability-related error correction, (2) personal data protection and immutability, (3) access to different data layers, (4) obligation and capacity to report, (5) identification of counterparties and (6) conflict of interest. These six issues were used as basis for a survey with experts in this field from industry and academia. The majority of our respondents indicated four major points: (i) reduction of transaction costs is the main expected benefit, (ii) the application of blockchain can be compliant with the current regulatory framework, (iii) a sandbox is the most welcome regulatory approach to reduce legal uncertainty, and (iv) the first use case to be commercially implemented is expected to be a P2P platform, ahead of a use case focused on post-trade processes. We believe that the results presented in this manuscript might serve as guidance for market participants aiming to enable the development of blockchain.

Keywords: electricity; wholesale; trading; OTC; blockchain; Europe (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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