Identifying Barriers Hindering the Application of Blockchain in the Energy Sector: Pestle and SWOT Analyses

Abstract

The global energy market is in a period of radical change. De­centralized energy production, energy storage and consumer-producers of electricity constitute the future shape of the electricity system. Distributed Ledger Technology, known as blockchain, is an emerging technology that can play an important role in green energy transition. Although blockchain can be applied to a wide range of applications in the energy sector, there is a lack of sound understanding. This paper aims to provide a market anal­ysis with the use of PESTLE and SWOT, resulting in a list of barriers that af­fect the successful application of blockchain technology in the energy sec­tor. The findings could assist related stakeholders, such as energy market ac­tors and policymakers to acquire a clearer view of blockchain use in the en­ergy sector and draw strategies that will overcome the barriers leading to the establishment of this technology in the energy sector.