Navigant Research assesses how blockchain is emerging in energy industry
Blockchain is not only limited to the world of Bitcoin and financial technologies, but encompassing a number of industries including utilities, according to a new report from Navigant Research.
The report, titled ‘Blockchain-Enabled Distributed Energy Trading’, analyses the specific requirements for an energy blockchain, providing practical recommendations, case studies, opportunities, and implementation challenges, with an analysis of peer to peer (P2P) power trading and how it supports transactive energy.
According to the report, using blockchain for P2P trading allows flexibility and low-cost approach to highly granular transactions that are difficult to replicate in a centralised system. Blockchain will not be used directly by utilities, but rather other stakeholders; this will include owners of distributed energy resources and start-ups seeking to sell directly to them.
The technology helps in faster transactions, reducing the cost of performing those transactions, removal of centralised market control, and ensuring trust between different market participants.
Stuart Ravens, principal research analyst with Navigant Research, says: “While financial services has led the development of blockchain, utilities are starting to realize the technology’s potential—a number of proofs of concept have been launched, and we expect many utilities to test blockchain. However, the most promising area for blockchain is in P2P trading, where owners of distributed generation can sell their excess generation to whomever they wish.”