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\nprojects in the electricity market and identify how they affect it. This research examines the\nmarket trends within the electricity market as well as general socioeconomic and\ntechnological developments.\nThis paper is based on a conceptual analysis of case studies that utilise blockchain\ntechnology in the electricity market and an empirical evaluation of considerations that have\nto be made when implementing a peer-to-peer energy-trading platform. For the conceptual\nanalysis, a four-dimensional business model framework has been defined. To specify the\ndimensions of the business model, categories and characteristics have been identified that\nhave been determined to be characteristic to the 22 analysed case studies. Seven business\nmodel archetypes were subsequently derived from the initial four-dimensional review of the\ncase studies.\nThis paper adds value to both research and practice in three ways. First, it facilitates\ndiscussions about blockchains in the electricity market and their practical use. Second, it\nsheds light on the implications of their use on the electricity market and its participants.\nThird, it highlights what factors need to be considered when implementing a blockchainbased\nP2P energy-trading platform.\nWhile the first energy blockchain project was introduced in 2015, at the time this paper was\nsubmitted it was the first publication that analysed blockchain-based business models in the\nelectricity market. In writing this paper, the author has assumed that readers have only little\nknowledge of blockchain technologies and the opportunities for their application in the\nenergy market.