A new report – Blockchain-Enabled Distributed Energy Trading, from Navigant Research says using Blockchain for P2P trading provides a flexible and low-cost approach to highly granular transactions that are difficult to replicate in a centralized system and it places consumers at the heart of the smart grid. The earliest adopters of Blockchain are unlikely to be utilities, but rather other stakeholders, including owners of distributed energy resources and startups seeking to sell directly to them.
The paper examines the specific requirements for an energy Blockchain, providing recommendations, case studies, opportunities, and implementation challenges, with an analysis of peer-to-peer (P2P) power trading and how it supports transactive energy.
It also discusses the many specific requirements of an energy Blockchain and provides several practical recommendations to the industry. The study offers an analysis of the drivers for P2P trading and discusses why Blockchain is an attractive option to support transactive energy. It also includes discussion of case studies, opportunities, and implementation challenges associated with Blockchain technology. An Executive Summary of the report is available for free download on the Navigant Research website.
“While financial services has led the development of Blockchain, utilities are starting to realize the technology’s potential—a number of proofs of concept have been launched, and we expect many utilities to test Blockchain,” says Stuart Ravens, principal research analyst with Navigant Research. “However, the most promising area for Blockchain is in P2P trading, where owners of distributed generation can sell their excess generation to whomever they wish.”
Navigant Research, the dedicated research arm of Navigant, provides market research and benchmarking services for rapidly changing and often highly regulated industries. In the energy sector, Navigant Research focuses on in-depth analysis and reporting about global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Energy Technologies, Utility Transformations, Transportation Efficiencies, and Buildings Innovations sectors. Additional information about Navigant Research can be found at www.navigantresearch.com.
Blockchain is a distributed ledger technology that supports P2P trading without the need for a central market function. While it is most widely known as the infrastructure on which Bitcoin runs, potential use cases are emerging in a number of industries, including utilities. Blockchain is appealing where there is a need to accelerate transaction times, remove centralized market control, reduce the cost of performing transactions, and ensure trust between different market participants.
Navigant Consulting, Inc. is a specialized, global professional services firm that helps clients take control of their future. Navigant’s professionals apply deep industry knowledge, substantive technical expertise, and an enterprising approach to help clients build, manage and/or protect their business interests. With a focus on markets and clients facing transformational change and significant regulatory or legal pressures, the Firm primarily serves clients in the healthcare, energy and financial services industries. Across a range of advisory, consulting, outsourcing, and technology/analytics services, Navigant’s practitioners bring sharp insight that pinpoints opportunities and delivers powerful results. More information about Navigant can be found at navigant.com.