The adoption of blockchain technology has spurred significant growth in the global Non-fungible tokens (NFT) market, which distinguishes itself from traditional markets by features such as free second-hand transactions and creator royalties. To navigate this burgeoning landscape, diverse business models have emerged, such as No secondary market and no royalties, Secondary market but no royalties, and Secondary market with royalties (mandatory royalty). In response, our theoretical model delves into the impact of these models on creator decisions, profits, consumer surplus, and social welfare. The NFT secondary market proves pivotal, enabling creators to set higher prices and enhance profits. Interestingly, introducing a creator royalty, under certain conditions, further boosts profits. Contrary to expectations, a low royalty doesn't always harm consumers; in fact, a sufficiently high royalty prompts creators to lower regular selling prices, fostering secondary transactions and expanding consumer surplus. Beyond the secondary market's conventional role in improving social welfare, our research reveals that a well-calibrated royalty, coupled with creator investment in NFT quality, can amplify social welfare. A low royalty incentivizes creators to prioritize highquality NFT production. We also scrutinize mandatory versus optional royalty policies (Consumer Optional Royalty), finding that the creator's profit is higher under the optional royalty framework with moderate or substantial royalties. We recommend that NFT creators opt for a medium royalty rate when given the choice to set it themselves. Otherwise, in instances where the royalty rate is predetermined, creators are better with mandatory (optional) royalty when royalty is small (large).
Abstract In this paper, a multigeneration cycle of electricity, cooling, and Bitcoin whose energy source is geothermal, has been subjected to energy, exergy, and economic analyses. The cycle under consideration includes the steam cycle (upstream cycle), the carbon dioxide cycle (downstream cycle), and the liquid–gas line to absorb the heat dissipated by the carbon dioxide cycle. In this cycle, the steam cycle condenser acts as the carbon dioxide cycle evaporator. Part of the electricity generated by this cycle is used to generate Bitcoins. Energy and exergy efficiencies at baseline (excluding Bitcoin production) are 45.8% and 38.1%, respectively. In this cycle, if more power is spent on producing Bitcoin as a product, the energy and exergy efficiencies of the cycle are reduced. Because Bitcoin itself is not valuable in terms of energy and exergy. Considering the average price of Bitcoin during the years 2015–2022 and if 100% of the electricity generated by the system is spent on Bitcoin production, the payback period in 2018, 2021, and 2022 when the price of Bitcoin is equal to $13,412.4, $21,398.8, and $47,743.0, respectively, are less than the baseline. Therefore, the production of Bitcoin with a variety of renewable energies can be considered as a solution. Of course, it should be noted that large changes in the price of Bitcoin can affect the issue of economic benefit.
Marco Schletz, Axel Constant, Angel Hsu, Simon J.D. Schillebeeckx · 6 authors
The Regenerative Finance (ReFi) movement aims to fundamentally transform the governance of global common pool resources (CPRs), such as the atmosphere, which are being degraded despite international efforts. The ReFi movement seeks to achieve this by utilizing digital monitoring, reporting, and verification (D-MRV); tokenization of assets; and decentralized governance approaches. However, there is currently a lack of a clear path forward to create and implement models that actually drive the “Re-” in ReFi beyond perpetuating the existing extractive economics and toward actual regeneration. In addition, ReFi suffers from growing pains, lacking a common interoperability framework and definition for determining what a ReFi project is and how the individual components align toward the grand ambition. This paper provides a definition of the ReFi stack of interconnected components and examines how it can address limitations in climate change accounting, finance and markets, and governance. The authors also examine the theory of regenerative economics and CPRs to encourage further discussions and advancements in the ReFi space. The crucial question remains if and how ReFi can drive a change in paradigm toward the effective regeneration of global CPRs.
As global economies accelerate toward net-zero carbon goals, the financing of clean technology (clean tech) deployment has become a critical priority. Yet, energy transition projects often face challenges of capital intensity, long payback horizons, and market uncertainty—particularly in emerging economies and decentralized energy systems. Strategic cost modeling provides a foundational tool for addressing these barriers by quantifying lifecycle costs, de-risking investments, and guiding capital allocation in alignment with environmental and economic objectives. This study presents a comprehensive approach to cost modeling tailored for clean tech financing, focusing on solar PV, wind, green hydrogen, battery storage, and grid modernization initiatives. It integrates techno-economic analysis with risk-adjusted financial modeling, incorporating dynamic inputs such as regulatory volatility, carbon pricing, technology learning curves, and supply chain bottlenecks. The paper also evaluates funding structures including blended finance, green bonds, and public-private partnerships (PPPs), highlighting how cost models inform structuring choices. Case studies from North America, Sub-Saharan Africa, and Southeast Asia illustrate how well-calibrated models support investment-grade project profiles, attract concessional and institutional capital, and align with climate finance frameworks. The role of digital tools—such as AI-driven scenario simulators and geospatial LCOE calculators—is explored for improving precision and investor transparency. Ultimately, the paper argues for a paradigm shift in energy finance where strategic cost modeling is not an afterthought but a core enabler of accelerated, equitable, and bankable clean tech deployment. This integration is vital for unlocking the trillions in climate-aligned capital needed to meet the ambitions of the global energy transition.
P. Rorich, Katleho Moloi, Thokozile Mazibuko, Innocent E. Davidson
Cryptocurrency mining is energy-intensive and large operations could put pressure on an already failing national grid in South Africa. Therefore, this report will discuss a way to alleviate some energy pressure from cryptocurrency mining using solar energy. This is relevant since cryptocurrency is gaining adoption and is increasingly being used and relied upon. Cryptocurrency is also an investment vehicle, and many use cases for blockchain technology have been and are being developed. By using MATLAB Simulink software, the DC-DC connection was designed and simulated. The output voltage results of the system were compared to the required voltages that a Graphics-Processing-Unit (GPU) mining rig requires, and the financial feasibility was determined by calculating how many cryptocurrency coins were mined per day and compared against fiat value. The results of the design show that it is theoretically possible to have a DC-DC connection directly from solar panel system to the mining rigs without the need to convert to AC first. It was also determined that such a system is financially viable as the return on investment was estimated to be around 2 years.
<b>Overview</b><br/>The energy sector as a main contributor to greenhouse gas emissions needs to undergo a large and rather quick transition in order to adjust for the Paris Agreement and to limit global warming to 1.5 or at least two degrees. Moving from conventional to renewable energy generation might also shift the place of installation, especially for small-scale end-users (i.e. citizens). We recognize that the current regulatory set-up in Europe results in large distributional effects of costs: high income households are more likely to own properties and therefore generation technologies while low-income households co-finance the installations and the system via taxes, levies and fees, leading to an increase in their costs (Borenstein and Davis 2016; Lüth, Weibezahn, and Zepter 2020). However, there is large potential to install generation technologies at smaller capacities, but the latest development has shown that more emphasis is put on the development of large-scale renewable energy installations, i.e. onshore and offshore wind farms or open-space PV (BMWi 2019). In an urban context, there is a limitation of space for highcapacity installations, yet high, centralized electricity demand.<br/>However, decentralized residential and small-scale technologies that combine generation and storage in the vicinity of the end-user in one location have not been regarded as one of the main influential parts of the transformation to sustainable energy. On the one hand, we find studies that emphasize the potential of residential and urban renewable energy technologies (Fraunhofer ISE 2020), but also see reports, on the other, that present the downsides of the approach to roll-out small-scale technology (Mathiesen et al. 2017). Considering rooftop PV, some studies show that costs for the technology, installation, and maintenance are much higher than for PV parks (Fraunhofer ISE 2018). Arguing based on pure system costs, we see a limitation in the approach (acatech, Akademienunion, and Leopoldina 2020) and formulate the hypothesis that decentralized generation in an urban high demand area is equally important for a successful energy transition as the large-scale deployment onshore and offshore. This follows earlier, established theories of decentralization (Schumacher 1973; Weizsäcker, Lovins, and Lovins 1997).<br/>In order to address monetary and non-monetary aspects of a large and small-scale technology deployment, we develop an alternative assessment scheme based on ecological, economic, and social criteria to qualitatively contrast the value of large-scale and small-scale renewable energy technologies. We apply this method to the context of the Global North and the Global South context to evaluate and identify advantages and current barriers as well as disadvantages of each approach from both a system and societal perspective.
The global oil and gas markets are characterized by extreme price volatility driven by geopolitical events, supply-demand imbalances, and macroeconomic factors. Traditional trading strategies often struggle to maintain profitability while mitigating risks in such unpredictable environments. This study explores the development and implementation of innovative trading strategies that optimize profitability and reduce risk in global oil and gas markets. By leveraging advanced analytics, algorithmic trading, and real-time market intelligence, traders can improve decision-making, enhance risk-adjusted returns, and achieve greater market resilience. The research examines key components of effective trading strategies, including price forecasting models, quantitative risk management techniques, and adaptive trading algorithms. Machine learning and artificial intelligence (AI) are integrated to analyze historical data, detect emerging trends, and generate predictive insights for market positioning. Additionally, the study explores the role of hedging instruments such as futures, options, and swaps in reducing exposure to market fluctuations. A comprehensive framework is proposed that incorporates sentiment analysis, technical indicators, and fundamental analysis to optimize trading margins and maximize profitability. Furthermore, the study highlights the significance of real-time data analytics and high-frequency trading (HFT) in capitalizing on short-term market inefficiencies. Scenario-based simulations and stress testing are employed to evaluate strategy performance under different market conditions, ensuring robustness and adaptability. The research also discusses the importance of regulatory compliance, liquidity management, and risk mitigation techniques in sustaining long-term profitability. Findings suggest that integrating AI-driven forecasting models and quantitative trading strategies significantly improves accuracy in market predictions, leading to enhanced profitability and reduced risk exposure. The proposed strategies offer actionable insights for energy traders, financial analysts, and policymakers seeking to navigate the complexities of the oil and gas markets. By adopting a data-driven, technology-enhanced approach, traders can gain a competitive advantage and improve market efficiency. Future research should explore blockchain-based trading platforms and decentralized finance (DeFi) solutions for further optimizing oil and gas trading strategies.
Lars Holstenkamp, Wiesenthal, Jan, Najamul Saqib Memon
The transformation of the energy system will require massive investments in the coming years. The total global investment requirement from 2018-2050 is estimated at 110 trillion US dollars. The magnitude of the investment needs makes it clear: investments are needed by all actors. An increasingly important role is played by citizens. They can invest individually and become prosumers (self-consumers of self-generated electricity) or they can organize themselves in bottom-up models such as Energy Communities, Community Energy or Local Energy Initiatives and jointly finance the investment costs.<br> But how is financing actually defined? What are the financing instruments? And what are the connections between financing (-instruments) and the energy transition? And what role do bottom-up models play in the energy transition? The aim of this paper is to trace and illustrate the links between financing, energy and the current role of bottom-up models in financing of the energy transition.<br> Financing can be understood in two different ways. In an energy economic sense, financing means the refinancing of capital employed. This includes energy sector regulations such as energy market design, environmental policies or private contracts. In a managerial sense, financing means the procurement of funds. A distinction can be made here between private and public financing. Not least because of the great importance of the regulatory framework, both aspects - energy policy instruments and financing in the managerial sense - are interrelated: The type and scope of the design of the financial requirement (e.g., the implemented support programs) directly influence the coverage of the financial requirements in the managerial sense. In the context of this study, we provide a brief overview of the various financing instruments. The financing instruments have already been intensively researched. For bottom-up models it emerges that risk-minimizing, transparent instruments such as FITs are advantageous. However, the question arises as to what overall effects on the system the various financing instruments have.<br> Based on a literature review on energy and financing, four perspectives were identified that have been discussed in past research. These include: micro-level perspectives, policy perspectives ("sustainable finance discourse"), system-level perspectives and literature studying the effects of developments in the energy sector on financial markets ("energy-to-finance"). Each of these perspectives contains elements of all three approaches to the topic of financing (managerial, energy economic, regulatory).<br> Looking at the bottom-up models, it is clear that considerable changes have taken place in recent years. Both technological progress, which has facilitated decentralized energy generation, and regulatory interventions, such as the Clean Energy Package, have strengthened bottom-up models in recent years. While research on bottom-up models has been conducted in the past in several countries with well established bottom-up models, research needs to be extended to other countries in order to generate transferable results. It is also clear that bottom-up models bring new challenges. One example is a tradeoff between investor risk management and the ability to finance bottom-up models. This also needs to be addressed in further research.
Serhat Yüksel, Hasan Dınçer, Çağatay Çağlayan, Gülsüm Sena Uluer · 5 authors
Abstract It is predicted that the bitcoin system will enter many areas of our lives in the future. Although it has many benefits, the most criticized issue of this system is excessive energy consumption. Since an excessive amount of energy is used in this process, it is vital that the preferred energy is environmentally friendly. For example, mining bitcoin with fossil fuels is likely to release a significant amount of carbon gas into the atmosphere. This will cause serious environmental problems. Therefore, great attention should be paid to the type of energy that will be used in bitcoin mining. In this study, it was stated that it would be beneficial to prefer nuclear energy in bitcoin mining. As a result of the use of nuclear energy, no carbon gas is released into the atmosphere. This will help reduce environmental pollution to a significant extent. Another dimension of nuclear energy being preferred in bitcoin mining is that the energy produced is continuous. The main reason for this is that nuclear energy is not affected by climatic conditions and temperature differences. Thanks to the preference of nuclear energy in bitcoin mining, it will be possible to contribute to the uninterrupted progress of this process.
In view of the continuous debates on the environmental impact of blockchain technologies, in particular, cryptocurrency mining, accompanied by severe carbon dioxide emissions, a technical solution has been considered assuming direct monetization of associated petroleum gas currently being flared. The proposed approach is based on the technology of low-temperature steam reforming of hydrocarbons, which allows flare gas conditioning toward the requirements for fuel for gas piston and gas turbine power plants. The generation of electricity directly at the oil field and its use for on-site cryptocurrency mining transform the process of wasteful flaring of valuable hydrocarbons into an economically attractive integrated processing of natural resources. The process is not carbon neutral and is not intended to compete with zero-emission technologies, but its combination with technologies for carbon dioxide capture and re-injection into the oil reservoir can both enhance the oil recovery and reduce carbon dioxide emissions into the atmosphere. The produced gas can be used for local transport needs, while the generated heat and electricity can be utilized for on-site food production and biological carbon dioxide capture in vertical greenhouse farms. The suggested approach allows a significant decrease in the carbon dioxide emissions at oil fields and, although it may seem paradoxically, on-site cryptocurrency mining actually may lead to a decrease in the carbon footprint. The amount of captured CO 2 could be transformed into CO 2 emission quotas, which can be spent for the production of virtually "blue" hydrogen by steam reforming of natural gas in locations where the CO 2 capture is technically impossible and/or unprofitable.
The rapid proliferation of renewable energy communities/ecosystems is an indication of their potential contribution to the ongoing energy transition. A common characteristic of these ecosystems is their complex composition, which often involves the interaction of multiple actors. Currently, the notions of "networking", "collaboration", "coordination", and "cooperation", although having different meanings, are often loosely used to describe these interactions, which creates a sense of ambiguity and confusion. To better characterize the nature of interactions in current and emerging ecosystems, this article uses the systematic literature review method to analyse 34 emerging cases. The objective is threefold (a) to study the interactions and engagements between the involved actors, aiming at identifying elements of collaboration. (b) Identify the adopted technological enablers, and (c) ascertain how the composition and functions of these ecosystems compare to virtual power plants. The outcome revealed that the interactions between the members of these ecosystems can be described as cooperation and not necessarily as collaboration, except in a few cases. Regarding technological enablers, a vast panoply of technologies, such as IoT devices, smart meters, intelligent software agents, peer-to-peer networks, distributed ledger systems/blockchain technology (including smart contracts, blockchain as a platform service, and cryptocurrencies) were found. In comparison with virtual power plants, these ecosystems have similar composition, thus, having multiple actors, comprised of decentralized and heterogeneous technologies, and are formed by aggregating various distributed energy resources. They are also supported by ICT and are characterized by the simultaneous flow of information and energy.
The massive political support for renewable energies since the late twentieth century has triggered a renewable energy revolution that—together with liberalization—has transformed energy sectors worldwide. This chapter argues that public actors and policies are vitally important for the transition to renewable energies with a deep impact on the mix of investor groups, and the variety of ownership and financing structure. Renewable energy support policies, especially those aiming at the mitigation of market risk, can play a decisive role in providing opportunities for the engagement of specific investor groups, thereby significantly shaping national renewable energy transitions, their actor constellations, and geographies, as shown by the examples of Germany and Kenya. The rise of renewable energies in Germany, which reached a share of almost 40% in the German power mix in 2018, was accompanied by a decentralization of ownership in the electricity sector, with a decreasing role for utilities and a greater role for various other investor groups.
Sina Eslamizadeh, Amineh Ghorbani, Rolf Künneke, Margot Weijnen
The industrial sector plays a huge role in creating economic growth. While energy is vital for industries to thrive, various factors are undermining the availability of energy including phasing out of fossil fuels, CO2 emission caps and, the large gap between the fast developments of industrial clusters and the energy supply, especially in developing countries. Recently, enabled by renewable energy technologies, a transition process is taking place towards decentralized settings for energy provision where households in neighbourhoods initiate renewable electricity cooperatives. The question addressed in this research is if or to what extent the model of collective action deployed by citizen cooperatives is applicable to collaborations between industries in an industrial cluster. We identified the conditions for the establishment of Industrial Community Energy Systems (InCES) from a collective action perspective by using Ostrom’s Institutional Analysis and Development Framework. The case study selected is the industrial city of Arak, one of the largest and most diversified industrial clusters in Iran. Besides desk research, data was also collected by conducting semi-structured interviews and by holding stakeholder workshops. The results of this study highlight the importance of community spirit and trust for the establishment of InCES, unlike citizen cooperatives where finance and environmental attitude are essential. A transparent legal framework to resolve conflicts that might emerge in industrial partnerships is another crucial element given the many differences among industries such as differences in energy demand and in usage patterns.
Digital technology has the potential to radically reshape the way we generate, trade and consume energy. Over the past decade, the incorporation of information and communications technology into the energy system has emerged as a significant driver of change in the sector but the pace and scale of that change is likely to increase dramatically over the decades to come. This Briefing Paper investigates the key technologies that underpin the digitisation of energy and examines their potential impacts. The overarching objective of the paper is to understand the effects new technologies will have on the current energy system, the new challenges they will pose, and the policies and regulatory measures which will assist in making them a success. Specifically, this paper considers four technological areas of digitalisation: big data; machine learning and AI; the Internet of things; and distributed ledger technology, often referred to as blockchain.
As the conjuncture of the energetic system in countries or different regions changes, renewable energy sources play a significant role. Thanks to them, it is possible to move from pollute fossil fuels to sustainable use of clean resources. It is widely acknowledged that the use of biomass waste promotes better environmental state and sustainable development because the waste that cannot be recycled is used for energy production. This article describes the usage of blockchain technology-based biomass systems that not only allows tracing the emergence of biomass, but also contributes to the development of sustainable energy. The research shows that a biomass blockchain enables simplification of biomass production process, thus saving resources and contributing to the expansion of forests and the development of common energy system.
This study assesses the roles of Bitcoin as a hedge, a safe haven and/or a diversifier against extreme oil price movements, in comparison to the corresponding roles of gold. We use a quantile-on-quantile regression approach to capture the dependence structure between the considered market returns under different Bitcoin market conditions, while considering nuances of oil price movements, compared to gold. Our findings show that both Bitcoin and gold would serve the roles of a hedge, a safe haven and a diversifier for oil price movements. However, this property seems to be sensitive to the Bitcoin's and gold's different (bear, normal or bull) market conditions and to whether the oil price is in a downside, normal or upside regime. By controlling for new and relevant U.S. and global uncertainty indicators, we confirm that both Bitcoin and gold, but not oil, are assets where investors may park their cash during times of political and economic turmoil. The conditional Value-at-Risk (CoVaR) approach to risk management is then conducted, providing robust evidence of the usefulness of each of the Bitcoin and gold in expanded oil portfolios, in terms of diversification opportunities and downside risk reductions.