Smart Contracts in Energy Markets

Abstract

The integration of smart contracts in energy markets marks a transformative shift toward decentralization, automation, and enhanced transactional efficiency. As blockchain-based technologies are increasingly used to facilitate peer-to-peer energy trading, grid management, and decentralized energy exchanges, questions of legal enforceability, liability, and dispute resolution remain critical. This chapter aims to examine the foundational legal and regulatory considerations that govern smart contracts within the context of energy markets. It will explore how traditional legal principles interact with emerging technologies, including the enforceability of self-executing code under contract law, jurisdictional challenges, and the applicability of consumer protection and liability statutes. Case studies from pioneering jurisdictions such as the European Union, the United States, and select Asia-Pacific countries will be analyzed to provide comparative insights.