Blockchains in Power Markets: Decentralized Disruption or Incremental Innovation?

11 February 2019
George Anstey, Dr. William S. Taylor, Max Luke, and Adjmal Sirak

NERA Associate Director George Anstey, Senior Consultant Dr. William S. Taylor, Consultant Max Luke, and Analyst Adjmal Sirak reflect on the economic advantages of entrusting to centralized intermediary organizations certain functions in power markets. The emergence of blockchain has led to questions about the need for these centralized market intermediaries. The authors consider the disruptive potential of decentralized blockchain applications in power markets and analyze the potential benefits to market participants who want more independent agency over their electricity supplies and transparency in transaction details.