Electricity powered by blockchain: A review with a European perspective

Tamara Roth, Manuel Utz, Felix Baumgarte, Alexander Rieger, Johannes Sedlmeir and Jens Strüker

Applied Energy, 2022, vol. 325, issue C, No S0306261922010765

Abstract: Blockchain is no longer just a hype technology, and effective blockchain applications exist in many industries. Yet, few blockchain projects have been successful in Europe’s energy systems. To identify the reasons for this slow progress, we reviewed the recent energy literature regarding the use of blockchain, analyzed industry reports, and interviewed experts who have conducted blockchain projects in Europe’s energy systems. Our analysis reveals eight common use cases, their expected benefits, and the challenges encountered. We find that the expected benefits are often little more than generic hopes, largely outweighed by technological, organizational, and regulatory challenges. The identified challenges are significant and numerous, especially for peer-to-peer trading and microgrid use cases. The fact that few projects have yet provided robust evidence for profitable use suggests there is still a rocky road ahead. Moreover, many use cases appear to require more than just blockchain technology to succeed. In particular, privacy and scalability requirements often call for systems in which blockchains only take a backseat. This realization may be essential for the future use of blockchain technology in energy systems – in Europe and beyond.

Keywords: Blockchain; Benefits; Challenges; Energy Systems; Machine Identities; Systematic Literature Review (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (9)

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DOI: 10.1016/j.apenergy.2022.119799

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