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

Marco Schletz, Ana Cardoso, Gabriela Prata Dias and Søren Salomo
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Marco Schletz: UNEP DTU Partnership, Department of Technology, Management and Economics, Technical University of Denmark, Copenhagen Ø, 2100 Copenhagen, Denmark
Ana Cardoso: UNEP DTU Partnership, Department of Technology, Management and Economics, Technical University of Denmark, Copenhagen Ø, 2100 Copenhagen, Denmark
Gabriela Prata Dias: UNEP DTU Partnership, Department of Technology, Management and Economics, Technical University of Denmark, Copenhagen Ø, 2100 Copenhagen, Denmark
Søren Salomo: Technology and Innovation Management, Technical University Berlin, 10623 Berlin, Germany

Energies, 2020, vol. 13, issue 22, 1-23

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.

Keywords: energy efficiency; blockchain; market barriers; energy efficiency obligations; white certificate scheme (WCS); energy service companies (ESCOs); peer-to-peer (P2P); energy trading; decision framework (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: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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