Blockchain Technology Embraces Energy Sector

Published: Jul 2019

The global market of blockchain technology in energy is still at an inception stage although, there is a huge potential for this technology to bring positive outcomes in the energy sector. The current market trend shows that distributed energy sources and renewable energy are being adopted around the globe and for maximum deployment, such technology is required to bring change. Thus, there will be a need for data exchanges and advanced communication between operators of this network for the management of operations in different regions. The blockchain technology works in a chain, hence reducing the transaction cost and increasing the efficiency and transaction speed. This system also assists in overcoming the challenges of decentralized energy systems and the distribution of transactions by the distributors. Furthermore, it boosts real-time customer utility and provides credits of renewable energy to the users. The consumers will be able to directly compare the energy providers along with analysis of their amount and type of energy consumption and reduce their energy bills.

Browse the full report of Blockchain Market at https://www.omrglobal.com/industry-reports/blockchain-market/

Further, the growth of blockchain market is attributed to advancements in technologies and increased market players competing in this market, hence increasing the market size of blockchain technology in energy. Furthermore, blockchain technology in energy is needed for improving the database management of users and increasing efficiency in multiparty transactions across the globe. The deployment of such technology can be seen in the public and private blockchains which are used for the purpose of supply chain management, energy trading, payment schemes, government compliance, and risk management and grid management. The major end-users of blockchain in energy market include the power sector and oil and gas. The power sector is forecast to contribute the most to this market due to the proper management of distributed energy sources, simpler recording, and processing of transactional data and providing better cost-effective solutions to the companies. The restraints of this market include uncertainty in the adoption of this technology, lack of standardized regulations, and authenticity of users. Further, there is not much surety till now whether this technology will be able to support the globally connected network of energy transfer or not. The transmission also needs to be fully secured and should be able to react to the market signals. The US Federal Trade Commission has set up a Blockchain Working Group to regulate and standardize the blockchain system for further assistance in the energy sector.

The players competing in the global blockchain technology in the energy market include LO3 Energy, Inc., Infosys Ltd., Accenture, IBM Corp., GridPlus, Inc., BigchainDB GmbH, and The Sun Exchange (Pty) Ltd. The competition in this market is being driven by strategies such as mergers and acquisitions, global expansion, partnerships and collaborations (especially with various blockchain startups), and innovations. Furthermore, the companies are also increasing their market share by launching new products with better technology to serve the needs of the energy operators and end-users. In February 2018, the strategy of the partnership was adopted by Power Ledger Pty Ltd. and Clean Energy Blockchain Network (CEBN) so as to advance the use of renewable energy by blockchain technology in Japan. Furthermore, in July 2019, Clearway Energy Group, the clean energy development firm launched a pilot program that will use blockchain in order to trade renewable energy credits. Moreover, the competition is also growing due to a new trend of shifting towards using clean energy and so better management of data and energy providers will fulfill this expansion in the global blockchain technology in the energy market.

Current Market Trends Covered in the market report:

  • Europe region to emerge as a fastest growing blockchain in the energy market
  • Significant adoption of renewable energy around the globe
  • Shifting of consumers towards using clean energy
  • Partnerships and collaborations – key drivers of competition in this market
  • Undiscovered opportunity for blockchain technology in energy in various countries

The Report Blockchain in Energy Market Segmentation

By Deployment

  • Public
  • Private

By Application

  • Grid Management
  • Energy Trading
  • Supply Chain Management
  • Others (Government Risk and Compliance Management)

By End-User

  • Power Sector
  • Oil & Gas

By Region

North America

  • United States
  • Canada

Europe

  • Germany
  • United Kingdom
  • France
  • Spain
  • Italy
  • Rest of Europe

Asia-Pacific

  • China
  • Japan
  • India
  • Rest of Asia-Pacific

Rest of the World

  • Middle East & Africa
  • Latin America