In our previous article, we examined blockchain’s role in oil and gas, focusing on joint ventures, contracts, and secure data management. In this article, we focus on the entire energy sector and explore how blockchain can impact resolving certain aspects of the energy sector, such as reshaping electricity markets, enable peer-to-peer (P2P) trading, support microgrid resilience, and enhance carbon credit mechanisms.
The energy sector is not just limited to oil and gas, and it has many direct consumer-based KPIs that add to the complexity. Unlike oil and gas, where adoption is driven largely by global majors, applications in electricity and power are being tested by utilities, startups, and consortiums—delivering measurable ROI through efficiency gains, revenue opportunities, and cost reductions.
Studies analyzing the benefits of blockchain in energy consumption, trading, and scalability have shown improvements in efficiency, transparency, and trust. Below are some statistics observed from the sources supporting blockchain implementation.
- Consumer savings: Up to 40% reduction in household bills through localized P2P marketplaces, increasing affordability while expanding prosumer revenue streams.
- Trading efficiency: 30–50% reduction in settlement and reconciliation costs by replacing manual processes with shared ledgers, improving liquidity and capital efficiency.
- Operational transparency: Immutable tracking of energy flows, carbon credits, and renewable certificates builds trust with regulators and investors, strengthening ESG credibility and reducing compliance costs.
- Scalability and interoperability: Consortium-led standardization can unlock economies of scale, lower integration costs, and enable seamless interaction across utilities, oil and gas, and renewables, which is by far the biggest advantage.
Adoption Challenges
Despite the advantages mentioned above, blockchain continues to face challenges in gaining traction in every region. Adoption has been slower than expected, constrained by regulatory uncertainty, scalability challenges, and cautious investment. While pilots in North America and Europe demonstrate blockchain’s capacity to reduce costs, enhance transparency, and advance ESG objectives, the path ahead remains complex.
| Regional Perspectives | Challenges Hindering Scale-Up |
| North America. Rapid growth in P2P pilots and community microgrids; utilities and startups scaling blockchain for resilience. | Regulatory complexity. Fragmented rules and limited legal recognition of blockchain transactions create uncertainty. |
| Europe. Leading adoption in carbon tracking, renewable certification, and blockchain-based microgrids; aligned with EU decarbonization targets. | Technical scalability. Energy platforms must handle millions of trades per day at low latency and cost. |
| Asia Pacific. High potential for renewable integration (e.g., solar in India and Australia); most projects remain at pilot stage. | Interoperability. Lack of standardized protocols across platforms prevents network effects. |
| Global: Adoption of blockchain | ROI uncertainty: Conservative utilities and operators await proven financial returns before committing large-scale investment. |
As evident from certain examples and references cited, blockchain initiatives at enterprise often fail due to lack of objectives, misapplication of technology, poor governance, regulatory resistance, and/or resource constraints. These issues are reflected in a 90% failure rate and an average project lifespan of just 1.2 years.
Key Applications of Blockchain in the Energy Sector
Key applications of blockchain in the energy sector point to increasing acceptance and practical value.
P2P Energy Trading. Blockchain enables consumers and prosumers to transact electricity directly, without intermediaries. Using real-time dynamic pricing through smart contracts, blockchain reduces dependency on centralized utilities and lowers household costs. Globally, 59% of blockchain energy projects are focused on P2P marketplaces, with pilots demonstrating up to 40% reduction in bills.
The Quartierstrom project in Switzerland illustrates how localized blockchain-based markets improve both affordability and resilience—delivering tangible value by lowering costs and unlocking new revenue streams for prosumers.
Grid Management and Microgrids. Distributed ledger technology in blockchain enhances demand forecasting, supports decentralized balancing, and enables autonomous microgrids. When integrated with AI-driven virtual power plants (VPPs), blockchain allows distributed resources to be monetized, driving revenue growth for asset owners while reducing grid balancing costs. Projects such as the Brooklyn Microgrid in the US highlight how blockchain improves operational efficiency, resilience, and transparency in localized grids.
Carbon Credit and Emission Tracking. Blockchain provides immutable tracking of carbon credits and renewable energy certificates, preventing double counting and greenwashing, i.e., over-calculating the carbon credits. Companies like Shell and Engie have piloted blockchain platforms to verify offsets and renewable sourcing. Tokenized carbon markets not only improve compliance and ESG reporting but also create liquid, trustworthy markets for trading environmental attributes—driving operational efficiency and enabling companies to capture value from sustainability initiatives.
In summary, it is essential for stakeholders to have clearly defined business objectives and cases, measurable ROI, stakeholder alignment, modular digital architecture, and scalable deployment strategies. Blockchain will always be at risk of being outpaced by alternative well-established digital or cloud-based platforms, a risk present for any upcoming technology that is trying to cross the chasm from early adopters to early majority.
For Further Reading
Forbes: The Blockchain Revolution in the Energy Market
Energy Digital: Top 10 Energy Companies Using Blockchain Technology
Webisoft: Blockchain for Energy Companies
Energies Media: How Blockchain Powers Energy Trading
Kaleido: B4E Reimagines Multi-Party Applications
Hart Energy: OOC Oil & Gas Blockchain Consortium
Wezom: Blockchain Technology in Oil and Gas Industry
Nature: P2P Trading & Renewable Energy Integration
Energy Central: Blockchain and P2P Energy Trading Roadmap
The Times: Net Zero Company Raises $5.5M for Carbon Tracking
Enterprise Blockchain is Not Dead – Notes Misaligned Expectations, Scalability/Privacy Concerns, and Why Many Early Pilots Stalled.
SettleMint (via Gartner): Top Three Reasons Why Enterprise Blockchain Projects Fail
Powerledger (Australia & Europe)
UrbanChain (UK): Blockchain-Powered Marketplace Licensed by Ofgem Reduced Energy Procurement Costs for UK Businesses and Communities
Ashish Fatnani is an industry solutions advisor for well construction at Halliburton, supporting customers across Europe, the Caspian, and Africa. With more than 12 years of global experience at Halliburton, Quest Global, and Mercedes-Benz, he partners with operators to drive digital transformation, optimize well construction, and unlock data-driven value through AI-enabled solutions. He holds a BS in petroleum engineering from Savitribai Phule Pune University, an MS from the University of Alaska Fairbanks, and an MBA from IIM Bangalore.
An SPE member since 2005, he has served on committees, contributed as a reviewer, and received the SPE Asia Pacific Regional Service Award in 2021.
Aman Srivastava is an adviser for TWA. He is product owner for Halliburton-Landmark. With a bachelor's degree in mechanical engineering from National Institute of Technology, Surat, India, a master's degree in petroleum engineering from the University of Oklahoma, and more than 15 years of experience in on-field and off-field drilling activities, Srivastava holds a special interest in well construction engineering and energy/sustainability. He received the SPE Mid-Continental Regional Award in 2023, is a reviewer of two peer-reviewed journals, and holds a patent for his design of an internal combustion engine. In his free time, he loves watching movies and reading books when he is not busy playing with his daughter and spending time with family.