Decarbonisation demands decentralisation: how blockchain is impacting the energy sector

In the transition to a society with net-zero carbon emissions, high penetration of renewable energy sources and novel energy vectors are driving traditional operational systems, models, and processes towards emerging digital solutions that facilitate the changes occurring in the energy sector. As a radical shift to decentralisation and digitalisation unfolds, blockchain technology emerges as a key enabler of this transformation. This paper provides a comprehensive analysis of the evolving role and potential of blockchain in supporting the energy sector's move to a more sustainable, efficient, and transparent system. Through the lens of blockchain’s capabilities, this paper explores how this technology can address the challenges of a rapidly digitalising energy landscape and offer a strategic advantage in the transition to a net-zero future. Specifically, blockchain facilitates increased hosting capacity by enabling dynamic interactions between distributed energy resources and the grid, ensuring real-time management and optimisation. This capability directly supports the grid in accommodating larger volumes of renewable sources without the need for extensive physical upgrades.