Blockchain for enabling transactions

Overview of the status and impact of the innovation



Blockchain technology is a novel distributed, digital ledger for verifying transactions. It provides a shared, secure and transparent environment wherein all transactions are registered, documented and processed. These transactions can include peer-to-peer electricity trading or the sale of excess energy flows in the form of heating, cooling or electricity, without the involvement of a trusted third party (Khan et al., 2019). For 5GDH systems, for instance, blockchain technology can create a common heat production system among district heating companies, energy producers and producer-consumers (prosumers) that helps to optimise the network.


Blockchain systems can help solve data reliability challenges, lower transaction costs, reduce error and fraud, and empower households and energy communities. Combined with smart contracts, blockchain systems can automate processes, helping to integrate renewables in the energy system and increase its flexibility. Potential future uses include enabling cross-sector and cross-border trade and providing tax benefits.

BOX 6.11 Blockchain for operating virtual power plants in Germany

The ViFlex pilot project, launched by German transmission system operator TenneT and the climate solution provider Viessman, bundles heat pumps together with energy storage to form virtual power plants. The project controls the operation of individual heat pumps to accommodate larger shares of renewable electricity and to prevent grid congestion. This pilot uses the Equigy blockchain crowd-balancing platform with smart contracts, enabling individual customers with flexible assets to participate in energy service markets.

Source:Equigy (2020).

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