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Market Research Report

Utility Blockchain Applications Market Overview: Blockchain-Based Platforms for Wholesale Energy Trading, Certificates of Origin, EV Charging and Integration, Meter Registration and Switching, and Transactive Energy

Published by Navigant Research Product code 634440
Published Content info 59 Pages; 19 Tables, Charts & Figures
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Utility Blockchain Applications Market Overview: Blockchain-Based Platforms for Wholesale Energy Trading, Certificates of Origin, EV Charging and Integration, Meter Registration and Switching, and Transactive Energy
Published: May 9, 2018 Content info: 59 Pages; 19 Tables, Charts & Figures
Description

Blockchain architectures are emerging technologies that can offer a decentralized, secure, and low friction alternative to traditional mechanisms for interactions between nodes participating in a network. At the heart of the blockchain architecture is the blockchain itself, a distributed ledger that stores all exchanges of information or value between network participants. While blockchain originated in the financial sector as a mechanism to support the exchange of digital currencies, the underlying technology has many applications outside of finance-like healthcare, law, and energy.

More than half of the current energy-related blockchain projects launched in 2016 and 2017, when hundreds of millions of dollars of investment poured into new projects. However, the energy industry's requirements for a blockchain architecture differ significantly from those of the financial sector and the technologies are still nascent. Energy-specific blockchain use cases must emphasize operational efficiency over complete decentralization and disintermediation, which requires blockchain architectures to be designed accordingly. This report provides an overview of five use cases where blockchain-based platforms are under development, highlighting the broad range of potential utilities industry applications. According to Navigant Research, total utility spending on these five blockchain-based platforms is expected to reach $3.7 billion by 2026.

This Navigant Research report provides an overview of the developing market for blockchain-based platforms in the utilities industry. The study focuses on wholesale energy trading, certificates of origin, EV charging and integration, meter registration and switching, and transactive energy platforms. Global forecasts of utility spending, segmented by region and use case, extend through 2026. The report also describes the components of a blockchain architecture and explores the competitive landscape and key challenges that must be addressed before blockchain can be widely adopted in the energy sector.

Key Questions Addressed:

  • How can blockchain be adapted to the energy industry?
  • What is a blockchain architecture?
  • What design challenges must be addressed for an energy blockchain to be successful?
  • Where can blockchain-based platforms create value along the energy industry value chain?
  • Which organizations are some of the leading innovators in the energy blockchain space?
  • How might utilities and industry incumbents be affected by emerging blockchain-based platforms?
  • How should industry players approach and engage with blockchain technology?

Who needs this report?

  • Utilities
  • Energy trading software developers
  • Energy software vendors
  • Distribution system operators
  • EV equipment manufacturers
  • Standards development associations
  • Investor community
Table of Contents
Product Code: MO-BUI-18

Table of Contents

1. Executive Summary

  • 1.1 Blockchain Architectures Will Support the Energy Cloud
  • 1.2 Market Forecasts and Dynamics

2. Market Issues

  • 2.1 The Utilities Industry Is Made Up of Many Stakeholders and Intermediaries
  • 2.2 Blockchains Enable Trusted Information Exchange in Multiparty Networks
  • 2.3 Blockchain Technologies Have Modular Architectures
    • 2.3.1 Blockchain Architectures Run on a Network of Peer Nodes
    • 2.3.2 Cryptographic Functions Translate Digital Information into Assets on the Blockchain
    • 2.3.3 Consensus Algorithms Determine a Validator for Each Block of Transactions
    • 2.3.4 Node Activity on the Network Is Recorded in a Distributed Database
  • 2.4 Blockchain Architectures Support Application Layers
    • 2.4.1 Smart Contracts Use Information in the Database as Inputs
    • 2.4.2 Dapps Function Like Smartphone or Desktop Applications
    • 2.4.3 Machine Learning, Big Data, and Analytics Can Benefit from Blockchain

3. Technology Issues

  • 3.1 Adapting Blockchain for the Utilities Industry
  • 3.2 Wholesale Energy Trading
    • 3.2.1 OTC Trades and Settlement Will Benefit First from Blockchain
    • 3.2.2 Wholesale Trading Platforms Have Relatively Low Requirements for Blockchain
    • 3.2.3 Internet of Things Technologies Could Improve Scheduling and Settlement
    • 3.2.4 Implementing Blockchain for Wholesale Energy Trading
    • 3.2.5 Blockchain-Based Platforms Can Support a Peer-to-Peer Charging Economy
  • 3.3 Certificates of Origin
    • 3.3.1 Blockchain Improves Data Quality and Reduces Costs
    • 3.3.2 Certificate Market Requirements Increase with Market Size
    • 3.3.3 Implementing Blockchain for COs
  • 3.4 EV Charging and Integration
    • 3.4.1 Blockchain-Based Charging Platforms Require Networked Charging Infrastructure
    • 3.4.2 Utilities Can Use Digital Tokens to Credit EV Owners for Flexibility Services
    • 3.4.3 VGI Networks Will Have High Throughput Requirements
    • 3.4.4 Implementing Blockchain for VGI
  • 3.5 Meter Registration and Switching
    • 3.5.1 Advanced Metering Infrastructure Can Be Registered to a Blockchain
    • 3.5.2 Implementing Blockchain for Meter Registration and Switching
  • 3.6 Transactive Energy
    • 3.6.1 Blockchain Architectures Can Support Local TE Markets
    • 3.6.2 TE Platforms Demand a High Throughput Architecture
    • 3.6.3 Implementing Blockchain for TE

4. Key Industry Players

  • 4.1 Electron
  • 4.2 Energy Web Foundation
  • 4.3 Filament
  • 4.4 Grid Singularity
  • 4.5 Hyperledger
  • 4.6 IBM
  • 4.7 LO3 Energy
  • 4.8 MotionWerk
  • 4.9 PONTON GmbH
  • 4.10 Power Ledger
  • 4.11 Siemens AG
  • 4.12 TenneT

5. Market Forecasts

  • 5.1 The Market for Blockchain Technologies Is Nascent
  • 5.2 Methodology
  • 5.3 Global Market Overview
    • 5.3.1 Regional View of Global Markets
  • 5.4 Wholesale Energy Trading Platforms
  • 5.5 Certificates of Origin Platforms
  • 5.6 EV Charging and Integration Platforms
  • 5.7 Meter Registration and Switching Platforms
  • 5.8 Transactive Energy Platforms

6. Recommendations

  • 6.1 Overview
  • 6.2 Take a Broad, Goal-Oriented Approach to New Technologies
  • 6.3 Start Simple and Build Functionality over Time
  • 6.4 Focus on Applications Where Information and Assets Can Be Digitized
  • 6.5 Do Not Dismiss the Potential Value of Token-Based Services
  • 6.6 Look for Opportunities to Pool Resources and Share Risk

7. Acronym and Abbreviation List

8. Table of Contents

9. Table of Charts and Figures

10. Scope of Study, Sources and Methodology, Notes

List of Charts and Figures

  • The Utilities Industry Value Chain Includes Many Potential Stakeholders
  • A Simplified Blockchain Transaction Process
  • The Energy Cloud Future
  • Utility Spending on Blockchain-Based Platforms by Use Case, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Platforms by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Wholesale Energy Trading Platforms by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Certificates of Origin Platforms by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based EV Charging and Integration Platforms by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Meter Registration and Switching Platforms by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Transactive Energy Platforms by Region, World Markets: 2017-2026

List of Tables

  • Hashing Functions Produce Unique Outputs of a Fixed Length
  • Blockchain Architecture Recommendations for Selected Energy Use Cases
  • Total Utility Spending on Blockchain-Based Platforms by Use Case, World Markets: 2017-2026
  • Total Utility Spending on Blockchain-Based Platforms by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Platforms for Wholesale Energy Trading by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Platforms for Certificates of Origin by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Platforms for EV Charging and Integration by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Platforms for Meter Registration and Switching by Region, World Markets: 2017-2026
  • Utility Spending on Blockchain-Based Platforms for Transactive Energy by Region, World Markets: 2017-2026
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