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Blockchain Technology

7.3  PROSPECTS OF BLOCKCHAIN TECHNOLOGY

IN ENERGY INDUSTRY

Blockchain technologies are deemed to be one of the most forthcoming pathways to

expedite the entrance of various energy sources. With plausible reasons, structur­

ing a blockchain-based communication system certainly offers appealing charac­

teristics. Blockchain can adequately respond to numerous obstructions found in the

energy sector of developing countries. Furthermore, it can cater to the corresponding

requirements of the local trade in electricity production and consumption from a par­

ticular vantage point to provide the replenish the shortage amount to the power grid.

A wide range of business and operations relating to the energy industry may be

regulated with blockchain technology (Edeland & Mörk, 2018). Smart metering and

smart contracts generated from blockchain technology can usher in a new era of

automated billing for customers and distributed generators. Pay-as-you-go platforms

can benefit both consumers and utility companies. The potential of energy micro-

payments can only be exploited with the help of blockchain technology (Burger

et al., 2016).

Energy sales practices will change in most countries accordingly, depending on

the environmental aspects, individual preferences and the customer’s profile (Burger

et al., 2016). Blockchains can classify market energy trends with artificial intelli­

gence (AI) techniques like machine learning (ML) (Singh et al., 2020). Distributed

trading platforms allowed by blockchain could dislocate business operations such

as risk management, demand control and commodity trading (Andoni et al., 2019).

Blockchains can also expand the power of autonomous microgrid and energy sys­

tems (Burger et al., 2016). Blockchains can theoretically be used to provide smart grid

solutions with the combined usage of smart meters, automated sensors, network secu­

rity equipment, energy storage and control systems, and smart home energy control­

lers and building control systems (Khaqqi et al., 2018). These intelligent systems can

be used with enhanced potentiality through the application of blockchain technology-

enabled smart grids. Besides, blockchains can assist with network security, flexibility

or asset management of decentralized networks and can offer integrated flexible trad­

ing networks to leverage scalable infrastructure (Pan et al., 2020). Smart contracts

will also theoretically ease energy trading and enhance energy mobility, potentially

lowering energy tariffs. Immutable databases and consistent procedures can dramati­

cally improve auditing and compliance with regulations (Thomas et al., 2019).

Blockchain in the energy industry can attract prospective investments. Tyro firms

or inexperienced start-ups can enjoy low barriers of entry into this sector via P2P

energy trading models. For a developing economy, blockchain certainly has the

answers to numerous challenges regarding the decentralized energy production sce­

nario (Giotitsas et al., 2015). It can further aid the policymakers of the country to

discern the energy demand and deviations in real time through grid simulations. For

policymakers, blockchain is also helpful in demand planning and all the accompany­

ing considerations through the implementation of this technology (Kiviat, 2015). As

a result, the costs of electricity would be open to all parties concerned. This includes

the grid responsible for distributing power and utility companies.