Electricity powered by blockchain: A review with a European perspective

Blockchain is no longer just a hype technology, and effective blockchain applications exist in many industries. Yet, few blockchain projects have been successful in Europe's energy systems. To identify the reasons for this slow progress, we reviewed the recent energy literature regarding the use of blockchain, analyzed industry re-ports, and interviewed experts who have conducted blockchain projects in Europe's energy systems. Our analysis reveals eight common use cases, their expected benefits, and the challenges encountered. We find that the ex-pected benefits are often little more than generic hopes, largely outweighed by technological, organizational, and regulatory challenges. The identified challenges are significant and numerous, especially for peer-to-peer trading and microgrid use cases. The fact that few projects have yet provided robust evidence for profitable use suggests there is still a rocky road ahead. Moreover, many use cases appear to require more than just blockchain tech-nology to succeed. In particular, privacy and scalability requirements often call for systems in which blockchains only take a backseat. This realization may be essential for the future use of blockchain technology in energy systems - in Europe and beyond.

Automated summary

While blockchain technology has been applied in many industries, successful blockchain projects in Europe's energy systems are few. Through reviewing recent energy literature, analyzing industry reports, and interviewing experts, we find that the challenges in technology, organization, and regulation outweigh the expected benefits. Peer-to-peer trading and microgrid use cases face particularly significant challenges. Additionally, many use cases require more than just blockchain technology for success.