Blockchain-Enabled Equity Crowdfunding for Energy Storage Investments

Abstract

Driven by techno-economic and climate change concerns, the energy sector is becoming more decentralized and decarbonized. With the increased deployment of intermittent energy sources such as photovoltaics, the need for energy storage is increasing. However, high costs still create a barrier for investing in such options. In this study, the Levelized Cost of Storage for residential scale Lithium-Ion battery is evaluated by comparing traditional and novel financing options such as blockchain-enabled crowdfunding. The proposed Financial Technology tool can allow multiple smaller stakeholders to offer loans with longer dept tenors and lower interests which will allow digital partial ownership of such investments and provide extra incentives for rapid deployment of energy storage solutions. The findings illustrate the economic viability of energy storage systems entering the European energy sector and highlight how blockchain-based FinTech tools can further accelerate the deployment of energy storage systems through energy financing.