EZblockchain - using surplus power to mine bitcoin; credit: EZblockchain
The backbone of Bitcoin and other cryptocurrencies: Distributed Ledger Technology is reshaping how energy is produced, traded, and managed by introducing decentralization, transparency, and automation into traditionally centralized energy systems. At its core, blockchain provides a secure, distributed digital ledger that records transactions without the need for a central authority. In the energy sector, this enables peer-to-peer (P2P) energy trading, more efficient grid management, and improved integration of renewable resources. EC has covered this topic previously: here and here.
A promising application is peer-to-peer energy trading, where households or small producers with solar panels can sell excess electricity directly to neighbors using blockchain-based smart contracts. These contracts automatically verify and execute transactions based on predefined rules, eliminating intermediaries and reducing transaction costs. Projects like Power Ledger (Australia) and Brooklyn Microgrid (USA) have demonstrated how local energy markets can function securely and transparently through blockchain.
Another emerging area is green certification and carbon tracking. Blockchain’s secure record-keeping allows for transparent verification of renewable energy certificates (RECs), carbon credits, and guarantees of origin, helping to prevent fraud, error and double-counting. Energy companies and regulators are can see the benefits of using blockchain to improve accountability and traceability in sustainability reporting.
Like any emerging technology, there are potential issues. Blockchain networks can consume significant computing power. Legal and regulatory frameworks often lag behind technological innovation. Interoperability with existing energy systems and data security concerns are also a real challenge.
Peer-to-Peer (P2P) Energy Trading
Power Ledger (Australia) – One of the first commercial blockchain energy platforms. It enables consumers with rooftop solar to sell excess power directly to nearby users. The blockchain records each transaction transparently, and smart contracts handle payments automatically in near real-time.
Brooklyn Microgrid (USA) – A community-based pilot in New York where residents trade locally generated solar power with neighbors. It uses the Ethereum blockchain to manage trades securely without a central utility.
SonnenCommunity (Germany) – Operated by battery manufacturer Sonnen, this platform allows households with solar and storage to share energy across a network, balancing local supply and demand while using blockchain for accounting and verification.
Grid Management and Flexibility
Electron (UK) – Works on blockchain-based platforms for distributed energy resource (DER) coordination, helping balance local grids and manage flexibility markets more efficiently.
WePower (Estonia/Lithuania) – Tokenizes electricity through blockchain-based smart contracts, allowing businesses to buy renewable energy directly from producers, with transparent tracking of each kilowatt-hour.
Grid Singularity (EU) – An open-source energy data exchange platform using blockchain to help utilities, consumers, and distributed generators share and verify grid data securely.
Carbon Tracking and Renewable Certification
Energy Web Chain (Global) – A public, energy-sector-specific blockchain used by major utilities (like Shell, Engie, and E.ON). It helps certify renewable energy generation and manage decentralized assets securely at scale.
Verra and I-REC Blockchain Pilots – These projects use blockchain to record and verify issuance and retirement of renewable energy and carbon credits, enhancing trust and reducing fraud in voluntary carbon markets.
LO3 Energy + Siemens – A collaboration on a blockchain system for tracing renewable energy use and verifying sustainability claims by corporations.
Electric Mobility and Charging
Share&Charge (Europe) – Allows peer-to-peer sharing of private EV chargers and automated payment settlement through blockchain, supporting EV infrastructure expansion without centralized control.
DOVU (UK) – Uses blockchain tokens to reward low-carbon behaviors, including EV use and efficient energy consumption, linking mobility and energy incentives.
Summary
While crypto-related technology in the energy industry is still small compared to traditional power-sector investments, these examples show real commercially-operational projects that are scaling geographically or organizationally.
Overall, blockchain is driving a shift toward more decentralized, transparent, and consumer-driven energy markets. While it is not a cure-all, its ability to enhance trust, reduce costs, and automate transactions positions it as an important component of the digital and renewable energy transition.