Challenges and opportunities of blockchain energy applications: Interrelatedness among technological, economic, social, environmental, and institutional dimensions

The energy sector is undergoing a transition of decarbonization, decentralization, and digitalization. This paper explores the application of blockchain in this transition. Through qualitative content analysis, expert interviews and discussion rooted in recent literature, key insights on the practical challenges and opportunities of blockchain energy applications are investigated. This is done in technological, economic, social, environmental, and institutional dimensions in order to propose holistic insights. Key dentified issues include scalability, data privacy, costs of change, market dynamics, user experience, skills, multi-stakeholder governance, and regulatory change. Key identified opportunities also range across these dimensions, such as blockchain advancements, power market development, user research, and regulatory sandboxes. While most research on blockchain energy applications has been from the technological lens, this paper contributes with a multi-dimensional approach. The interrelatedness among these dimensions is one of the key messages of this paper. Both corporate strategy and public policy development need to integrate user behavior research, business model innovation and regulatory experimentation for a holistic approach in understanding and implementing blockchain, and other emerging technologies. It is suggested that the multi-dimensional challenges and opportunities identified in this study, and functioning of their interrelatedness, are of interest for further exploration both in academia and among practitioners.

Automated summary

This paper explores the practical challenges and opportunities of applying blockchain in the transition of the energy sector. It highlights the potential for blockchain advancements, power market development, user research, and regulatory sandboxes. The paper emphasizes the interrelatedness among technological, economic, social, environmental, and institutional dimensions, and suggests integrating user behavior research, business model innovation, and regulatory experimentation in corporate strategy and public policy development.