Powered by blockchain: forecasting blockchain use in the electricity market

Abstract

Purpose

The purpose of this study is to formulate the most probable future scenario for the use of blockchain technology within the next 5–10 years in the electricity sector based on today’s experts’ views.

Design/methodology/approach

An international, two-stage Delphi study with 20 projections is used.

Findings

According to the experts, blockchain applications will be primarily based on permissioned or consortium blockchains. Blockchain-based applications will integrate Internet of Things devices in the power grid, manage the e-mobility infrastructure, automate billing and direct payment and issue certificates regarding the origin of electricity. Blockchain solutions are expected to play an important big role in fostering peer-to-peer trading in microgrids, further democratizing and decentralizing the energy sector. New regulatory frameworks become necessary.

Research limitations/implications

The Delphi study’s scope is rather broad than narrow and detailed. Further studies should focus on partial scenarios.

Practical implications

Electricity market participants should build blockchain-based competences and collaborate in current pilot projects.

Social implications

Blockchain technology will further decentralize the energy sector and probably reduce transaction costs.

Originality/value

Despite the assumed importance of blockchain technology, no coherent foresight study on its use and implications exists yet. This study closes this research gap.

Citation

Höhne, S. and Tiberius, V. (2020), "Powered by blockchain: forecasting blockchain use in the electricity market", International Journal of Energy Sector Management, Vol. 14 No. 6, pp. 1221-1238. https://doi.org/10.1108/IJESM-10-2019-0002