Decentralized energy networks based on blockchain: background, overview and concept discussion

Abstract

This paper provides a snapshot of the globally ongoing decentralization of (business) relations in the energy sector. This tendency can be observed in other domains as well and is accompanied by new digital technological developments. Blockchain technology is assigned disruptive potential when it comes to realize those decentralization ideas. This hype about Blockchain is mainly company-driven without a solid academic basis yet. The authors are currently involved in several research efforts for utilizing distributed energy resources like photovoltaic systems, batteries and electric cars for the setup of energy communities and marketplaces. The paper, therefore, presents detailed investigations of background and motivations for decentralization and the building of (local) energy communities and (peer-to-peer) marketplaces for sustainable utilization of renewable energies. An overview of recent related Blockchain-based works is presented, and the current state and feasibility for the realization of the envisioned decentralized solutions are discussed. In this way, the work aimed at contributing to a research-based decision foundation for upcoming Blockchain-based decentralization efforts.