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Blockchain Technology

Governments are aiming to form strategic alliances with the energy start-ups with a

view to employing the blockchain technology for quicker responses and incorporat­

ing trust in the system to break the conventional model of the slow licensing process

(Andoni et al., 2019).

Start-ups can act as a potent player, transforming the energy market through

blockchain-enabled technologies. Nonetheless, to be a successful disruptive actor for

the energy revolution in reality, there is a crying need for solemn commitments and

support from governments. Risks and incentives to achieve priorities such as climate

change and energy transformation targets must be carefully considered when work­

ing with the appropriate grid infrastructure. Blockchain technology can trace the

energy investments in different electricity sources and promote sustainable energy

solutions.

US-based company TransActive Grid, Power Ledger and Singularity from

Australia, Ideo CoLab, etc. are some of the start-ups in the energy industries that

are efficiently utilizing blockchain technology (Wang et al., 2017). These compa­

nies have demonstrated that specific usage of blockchain technology increases the

efficiency in supply analyses of the energy industry, helps in pricing and project

profits, assists in electricity sharing, provides options for automated power plants,

and performs microgrid management (Agency, 2016). In the meantime, such innova­

tions can also be exploited to trade renewable energy certificates (RECs), which are

typically given to the producers of solar energy based on the anticipated production

demands rather than actual figures. Several innovative ventures are already engaged

in designing grids and systems to facilitate power production in order to be able to

get these certificates. One such firm, Volt Markets, supplies energy and monitors

a trade network built atop smart contracts underpinned by Ethereum’s technology

(Henderson et al., 2018).

7.2.4  Increasing Energy Access in Developing Countries

In the energy sector, blockchain can also retain its original purpose and be used as

the cryptocurrency for monetary transactions; in fact, some companies have already

begun this campaign: For instance, SolarCoin, Bankymoon and BlockCharge, to

name a few (Kumar, 2018). In terms of blockchain usage, start-ups are still involved,

while applications are catching up. Others would go for joint ventures and coopera­

tions as a viable option. Hence, the value blockchain proposes would be the removal

of brokers as intermediaries between parties.

In principle, a complete decentralization of the energy sector through blockchain

implementation may be accomplished if financial transactions are removed from

central control. These advances may further allow room for inventions that over

time would increase access to electricity in developing countries. Take smart prepaid

meters as an example: A technology that only releases power to residential consum­

ers after they have updated their accounts and moved money to their energy supplier

(Chitchyan & Murkin, 2018).

This program could be advantageous for high-inflation countries like the BRICS

economies or South Asian nations. Conceptualizations of the technology came from