Smart Contract as an Enabler for the Digital Green Transition

Abstract

Modern power systems are evolving towards decarbonization and digitalization phases leading to Transactive Energy Systems (TES). Application of technology like Distributed Ledger Technology (DLT) to develop a TES is not an unheard topic of research. The joint operation of TES and DLT is providing various new opportunities and business models where smart contracts can play an enabler role to amalgamate interconnected systems like power systems and digital infrastructure and services. Furthermore, the current global environmental and political climate accentuates the need for clean energy sources combined with the need for deregulation, decentralization, decarbonization, digitalization, and democratization in the energy ecosystem. This work aims to demystify the potential of smart contracts as an enabler technology for the Digital Green Transition of the energy industry from a TES perspective. The work also explores how smart contracts can be used in various TES use cases. Furthermore, some insight into how policy, legal, and legislative requirements can impact the use of a smart contract for future energy grid is also provided.