One of the first complete and impartial reviews of the blockchain concluded that technology is "realizing its promises in a number of areas directly related to energy".
Scientists at Heriot-Watt University in Scotland have discovered that the blockchain could "further facilitate the applications of the smart grid and the decarbonisation of the energy sector".
Writing in the magazine Rinnovabili and Sustainable Energy Reviews, they review the results of over 140 projects, start-ups and initiatives, which cover all areas of energy blockchain, from energy models of the transactive community to the balancing and negotiation of emission certificates.
The document states that despite the blockchain being used for a certain period to support cryptocurrencies like Bitcoin and Ethereum, the interest in blockchain energy systems has surprised some in the energy sector. However, scientists conclude that the blockchain offers significant potential for the development of the way in which electricity is exchanged and shipped.
He quotes a poll of the German Energy Agency which revealed that nearly 20 percent of energy decision makers believe the blockchain is a turning point for energy providers.
The dott. Valentin Robu, an associate professor at Heriot-Watt University, explains: "Blockchains are often described as promising to allow a more decentralized and transactive energy system, if we are able to allow energy generation and use them locally, this could allow system operators to reduce expensive network reinforcements, as well as make local communities more self-sufficient and resistant to external power shocks.
"In energy applications, blockchains are often used in conjunction with artificial intelligence techniques such as multi-agent systems and machine learning, which enable smart micro-contracts and local energy exchanges, potentially allowing construction systems and service providers energy companies to identify consumer energy models and develop energy products tailored to the needs of individual consumers ".
He added that "this rapidly evolving technology is effectively delivering on its promises in a number of energy-related industries".
The paper states that potential gains in terms of transparency and competition could bring benefits to other key strategic objectives related to economic accessibility and energy poverty. He cites a business report from Deloitte, which states that blockchain-enabled transactional digital platforms may offer lower operational costs, higher efficiency, fast and automated processes, transparency, and the ability to reduce capital requirements for energy companies. 
And he adds that the potential for cost savings is not limited to public utilities: it is "relevant to energy consumers and consumers who are facing the rise in energy prices and the removal of incentives for renewable energies." Blockchain-driven solutions such as peer-to-peer business in local or consumer-centric markets could potentially lead to cost savings for energy consumers. "
However, researchers warn that blockchain technologies face many problems before they get broader adoption, including legal and regulatory challenges, the security and scalability of computing, as well as privacy issues. Other emerging issues in transitional energy models refer to the need to account for the costs of managing physical infrastructure and ensuring system stability and the role that system operators will play in a more decentralized energy world.
Merlinda Andoni, research associate of Heriot-Watt, said: "Energy systems are about to enter the era of digitization while more and more homes install smart meters and smart devices, and system operators are increasingly adopting information and communication technologies: Blockchain could potentially be used for the automatic and secure communication of such intelligent devices that would further facilitate the applications of the smart grid and the decarbonisation of the energy sector. "
To read the report in full click here.
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