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Blockchain in Energy Efficiency: Potential Applications and Benefits

Author

Listed:
  • Asma Khatoon

    (Department of Electrical & Electronic Engineering, National University of Ireland, Galway H91 TK33, Ireland)

  • Piyush Verma

    (International Energy Research Centre, Cork T12 R5CP, Ireland)

  • Jo Southernwood

    (International Energy Research Centre, Cork T12 R5CP, Ireland)

  • Beth Massey

    (International Energy Research Centre, Cork T12 R5CP, Ireland)

  • Peter Corcoran

    (Department of Electrical & Electronic Engineering, National University of Ireland, Galway H91 TK33, Ireland)

Abstract

Blockchain technology is ready to disrupt nearly every industry and business model, and the energy sector is no exception. Energy businesses across the world have already started exploring the use of blockchain technology in large-scale energy trading systems, peer-to-peer energy trading, project financing, supply chain tracking, and asset management among other applications. Information and Communication Technologies (ICTs) recently started revolutionizing the energy landscape, and now blockchain technology is providing an additional opportunity to make the energy system more intelligent, efficient, transparent, and secure in the longer term. The idea of this paper is to examine more closely the use of blockchain technology for its possible application in the energy efficiency industry and to determine how it could make energy efficiency markets more secure and transparent in the longer term. This paper examines in detail the key benefits and implications of using blockchain in the energy efficiency sector through the presentation and discussion of two case studies as possible blockchain applications—(i) the UK Energy Company Obligation scheme and (ii) the Italian White Certificate Scheme. We have presented how the key issues around trading energy efficiency savings—correctly estimating the savings, data transparency among stakeholders, and inefficient administrative processes—can be solved through the application of a blockchain-based smart contract system. Finally, this paper presents an implementation of a smart contract for trading of energy-saving certificates achieved via execution of smart contract transactions on the Ethereum blockchain.

Suggested Citation

  • Asma Khatoon & Piyush Verma & Jo Southernwood & Beth Massey & Peter Corcoran, 2019. "Blockchain in Energy Efficiency: Potential Applications and Benefits," Energies, MDPI, vol. 12(17), pages 1-14, August.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:17:p:3317-:d:261745
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    References listed on IDEAS

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    Cited by:

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    4. Robert Karaszewski & Paweł Modrzyński & Joanna Modrzyńska, 2021. "The Use of Blockchain Technology in Public Sector Entities Management: An Example of Security and Energy Efficiency in Cloud Computing Data Processing," Energies, MDPI, vol. 14(7), pages 1-19, March.
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    7. Liu, Jicheng & Sun, Jiakang & Yuan, Hanying & Su, Yihan & Feng, Shuxian & Lu, Chaoran, 2022. "Behavior analysis of photovoltaic-storage-use value chain game evolution in blockchain environment," Energy, Elsevier, vol. 260(C).
    8. Christoph Burger & Jens Weinmann, 2022. "Blockchain Platforms in Energy Markets—A Critical Assessment," JRFM, MDPI, vol. 15(11), pages 1-18, November.
    9. Agnieszka Dembicka-Niemiec & Edyta Szafranek-Stefaniuk & Antonina Kalinichenko, 2023. "Structural and Investment Funds of the European Union as an Instrument for Creating a Low-Carbon Economy by Selected Companies of the Energy Sector in Poland," Energies, MDPI, vol. 16(4), pages 1-21, February.
    10. Kirli, Desen & Couraud, Benoit & Robu, Valentin & Salgado-Bravo, Marcelo & Norbu, Sonam & Andoni, Merlinda & Antonopoulos, Ioannis & Negrete-Pincetic, Matias & Flynn, David & Kiprakis, Aristides, 2022. "Smart contracts in energy systems: A systematic review of fundamental approaches and implementations," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    11. Dmitriy Li & Jeong-Hwan Bae & Meenakshi Rishi, 2022. "A Preference Analysis for a Peer-to-Peer (P2P) Electricity Trading Platform in South Korea," Energies, MDPI, vol. 15(21), pages 1-20, October.
    12. Fangyuan Zhao & Wai Kin (Victor) Chan, 2020. "When Is Blockchain Worth It? A Case Study of Carbon Trading," Energies, MDPI, vol. 13(8), pages 1-28, April.
    13. Wang, Kaike & Su, Xuewei & Wang, Shuhong, 2023. "How does the energy-consuming rights trading policy affect China's carbon emission intensity?," Energy, Elsevier, vol. 276(C).
    14. Bai, Chunguang & Zhu, Qingyun & Sarkis, Joseph, 2021. "Joint blockchain service vendor-platform selection using social network relationships: A multi-provider multi-user decision perspective," International Journal of Production Economics, Elsevier, vol. 238(C).
    15. Jagdish Prasad Nepal & Nuttaya Yuangyai & Saroj Gyawali & Chumpol Yuangyai, 2022. "Blockchain-Based Smart Renewable Energy: Review of Operational and Transactional Challenges," Energies, MDPI, vol. 15(13), pages 1-21, July.
    16. Marco Schletz & Ana Cardoso & Gabriela Prata Dias & Søren Salomo, 2020. "How Can Blockchain Technology Accelerate Energy Efficiency Interventions? A Use Case Comparison," Energies, MDPI, vol. 13(22), pages 1-23, November.
    17. Lazar Gitelman & Mikhail Kozhevnikov, 2023. "New Business Models in the Energy Sector in the Context of Revolutionary Transformations," Sustainability, MDPI, vol. 15(4), pages 1-21, February.
    18. Michael Wang & Bill Wang & Ahmad Abareshi, 2020. "Blockchain Technology and Its Role in Enhancing Supply Chain Integration Capability and Reducing Carbon Emission: A Conceptual Framework," Sustainability, MDPI, vol. 12(24), pages 1-17, December.
    19. Ashish Dwivedi & Dindayal Agrawal & Sanjoy Kumar Paul & Saurabh Pratap, 2023. "Modeling the blockchain readiness challenges for product recovery system," Annals of Operations Research, Springer, vol. 327(1), pages 493-537, August.
    20. Filkin, Mikhail & Bozhko, Maksim, 2023. "Приложения И Перспективы Технологии Распределенного Реестра В Энергетике [Applications and prospects of distributed ledger technology in the energy sector]," MPRA Paper 119244, University Library of Munich, Germany.
    21. Fangyuan Zhao & Xin Guo & Wai Kin (Victor) Chan, 2020. "Individual Green Certificates on Blockchain: A Simulation Approach," Sustainability, MDPI, vol. 12(9), pages 1-32, May.
    22. Rameez Asif & Syed Raheel Hassan & Gerard Parr, 2023. "Integrating a Blockchain-Based Governance Framework for Responsible AI," Future Internet, MDPI, vol. 15(3), pages 1-21, February.
    23. Floros Flouros & Victoria Pistikou & Vasilios Plakandaras, 2022. "Geopolitical Risk as a Determinant of Renewable Energy Investments," Energies, MDPI, vol. 15(4), pages 1-21, February.
    24. Oskar Juszczyk & Khuram Shahzad, 2022. "Blockchain Technology for Renewable Energy: Principles, Applications and Prospects," Energies, MDPI, vol. 15(13), pages 1-24, June.
    25. Yuki Matsuda & Yuto Yamazaki & Hiromu Oki & Yasuhiro Takeda & Daishi Sagawa & Kenji Tanaka, 2021. "Demonstration of Blockchain Based Peer to Peer Energy Trading System with Real-Life Used PHEV and HEMS Charge Control," Energies, MDPI, vol. 14(22), pages 1-12, November.

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