How to improve the competiveness of distributed energy resources in China with blockchain technology

Distributed energy resources are located near users, which can realize energy cascade utilization and improve the energy utilization efficiency. The features of distributed ledgers and smart contract auto-execution possessed by blockchain technology are in line with the requirements of distributed energy resources in billing and settlement, which provides a direction for the application of blockchain technology in the distributed energy resources. The integration of distributed energy resources in China with blockchain technology may break the existing pattern where the production, transportation, distribution and sales of energy are centralized. This paper first summarizes the current status of distributed energy resources in China and blockchain technology, and then uses the Michael Porter five forces model to analyze the competitiveness of distributed energy resources. The rivalry, threat of new entrants, threat of alternatives, bargaining power of suppliers, and bargaining power of buyers in energy industry are presented and analyzed. Based on the competitiveness analysis, the SWOT model is used to analyze the joint development model of blockchain technology + distributed energy resources, and the feasibility of blockchain technology applied to distributed energy resources systems is revealed. Finally, the paper puts forward the key conclusions that blockchain technology can enhance the competitiveness of distributed energy resources as well as relevant policy recommendations.