Blockchain Technology Could Herald the Start of a New Model for Transactive Energy
Peer-to-peer power trading is gaining the most traction as a potential use case for blockchain
A new report from Navigant Research examines the specific requirements for an energy blockchain, providing recommendations, case studies, opportunities, and implementation challenges, with an analysis of peer-to-peer (P2P) power trading and how it supports transactive energy.
Blockchain is a distributed ledger technology that supports P2P trading without the need for a central market function. While it is most widely known as the infrastructure on which Bitcoin runs, potential use cases are emerging in a number of industries, including utilities. Blockchain is appealing where there is a need to accelerate transaction times, remove centralized market control, reduce the cost of performing transactions, and ensure trust between different market participants. Click to tweet: According to a new report from @NavigantRSRCH, blockchain could herald the start of a new model for transactive energy.
“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,” says Stuart Ravens, principal research analyst with Navigant Research. “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.”
According to the report, using blockchain for P2P trading provides a flexible and low-cost approach to highly granular transactions that are difficult to replicate in a centralized system and it places consumers at the heart of the smart grid. The earliest adopters of blockchain are unlikely to be utilities, but rather other stakeholders, including owners of distributed energy resources and startups seeking to sell directly to them.
The report, Blockchain-Enabled Distributed Energy Trading, discusses the many specific requirements of an energy blockchain and provides several practical recommendations to the industry. The study offers an analysis of the drivers for P2P trading and discusses why blockchain is an attractive option to support transactive energy. It also includes discussion of case studies, opportunities, and implementation challenges associated with blockchain technology. An Executive Summary of the report is available for free download on the Navigant Research website.
Contact: Lindsay Funicello-Paul
* The information contained in this press release concerning the report, Blockchain-Enabled Distributed Energy Trading, is a summary and reflects Navigant Research’s current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Navigant Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.