Blockchain in the electricity market : identification and analysis of business models

Abstract

This paper aims to identify the business models used by blockchain-based initiatives and projects in the electricity market and identify how they affect it. This research examines the market trends within the electricity market as well as general socioeconomic and technological developments. This paper is based on a conceptual analysis of case studies that utilise blockchain technology in the electricity market and an empirical evaluation of considerations that have to be made when implementing a peer-to-peer energy-trading platform. For the conceptual analysis, a four-dimensional business model framework has been defined. To specify the dimensions of the business model, categories and characteristics have been identified that have been determined to be characteristic to the 22 analysed case studies. Seven business model archetypes were subsequently derived from the initial four-dimensional review of the case studies. This paper adds value to both research and practice in three ways. First, it facilitates discussions about blockchains in the electricity market and their practical use. Second, it sheds light on the implications of their use on the electricity market and its participants. Third, it highlights what factors need to be considered when implementing a blockchainbased P2P energy-trading platform. While the first energy blockchain project was introduced in 2015, at the time this paper was submitted it was the first publication that analysed blockchain-based business models in the electricity market. In writing this paper, the author has assumed that readers have only little knowledge of blockchain technologies and the opportunities for their application in the energy market.