Blockchain-Enabled Micropayments Support Energy Services

Globally, there is an ongoing effort to transition the electricity grid away from a centralized, top-down system to a more distributed, decentralized, and decarbonized network to provide more reliable, affordable, and sustainable electric power. Stakeholder pressure, the changing customer, and the decline in costs of distributed energy resources (DER) have perpetuated this transition and encouraged the drive to a net-zero energy future. As a result, technology solutions are emerging that aim to meet these changing conditions. Blockchain has proven to be a beneficial technology across several industries and is well-positioned to assist in the energy industry where a vast network of suppliers, buyers, market operators, regulators, and other participants must coordinate to deliver reliable and affordable power to the end customer.

Blockchain is garnering more attention in the energy industry as a tool for customers, communities, and organizations to achieve a decarbonized and decentralized energy future. Several use cases have emerged, including Certificates of Origin, Renewable Energy Credit trading, decentralized financing, asset tokenization, and pay-as-you-go solar. Blockchain’s inherent capabilities of transparency, security, immutability, and the use of smart contracts helps drive efficiencies, reduce costs, and streamline processes.

This Guidehouse Insights report provides an overview of blockchain technology and its core capabilities, describes the changing energy landscape, and explores how blockchain can be used to enable a decentralized and decarbonized future. This report also offers suggestions for how the industry can collaborate in an effort to understand the technology and its potential.