Decentralised Local Energy Markets

Abstract

Uprising innovative technologies like blockchain and the Internet of Things are increasingly changing the energy domain. These disruptive technologies are becoming more mainstream as a result of media attention and are supported by large multinationals like Tesla and Google. This combined with the enormous CO2 emissions due to fossil fuels and increased number of black-outs has resulted in a growing societal need for self-owned and self-generated renewable energy. More and more communities are forming intending to produce their own energy and to sell their excess energy to their neighbours via local energy markets. This concept of local energy markets can theoretically be realised via the use of a blockchain. However, the manner in which and by whom this ideally shall be done is inconclusive. This research aimed to identify how the proposed business models are impacted by the blockchain facilitating local energy markets. This was done by stress testing the innovated business models against the identified uncertainties and scenarios that the blockchain and the transitioning energy domain bring forth. It was found that the business models of the Distribution System Operator and Supplier are despite several challenges feasible whereas the business model for the commercial/industrial prosumer is not and is advised to make a market entry at a later stage.