PRESS RELEASE 23 Mar 2017
Will blockchains revolutionise business models in the energy industry?
The new Pöyry Point of View article explores the potential of blockchain in the energy industry and how utilities can prepare for the potentially disruptive change in the market. While the technology is still very new to the sector, it has the potential to radically change the whole industry.
Blockchain has disruptive potential because, among other things, it ultimately makes any middlemen or other intermediaries - banks, financial institutions, and utilities - superfluous. Transactions are performed peer-to-peer and security is guaranteed by the blockchain. The new article, ‘Blockchain in the energy industry - from disruption to new business models?’ explores various possibilities and challenges posed by the technology.
There are already many indications that blockchains will gain a strong foothold in the sector. They could represent and execute various business processes, including being an ideal instrument for IoT devices to manage their transactions. The market disruption could create opportunities for energy suppliers to evolve into application or system providers that act as enablers of a decentralised power grid. This model would compensate for lost revenues in the energy business with licensing and usage fees.
Robert Schwarz, Principal at Pöyry Management Consulting says “Years 2015 and 2016 were starting points for blockchain in the energy sector. Year 2017 will be marked with pilot projects and in the coming years we will see numerous rollouts of new, relevant business models.”
However, Robert continues, “It is still much too soon to speak of a triumph, as blockchains must continue to evolve.” While several ideas are being developed around the technology, the direction of blockchain-based applications as well as the nature of their economic benefits in the energy sector is not yet clear. In addition, there are many regulatory barriers to overcome before blockchain can be deployed at a large scale.
For the energy sector, blockchain provides an opportunity for new or more efficient business models but also risks entirely new companies entering the market. If the initial challenges can be overcome, blockchain technology can revolutionise entire value chains in the decentralising energy industry.
Hill and Knowlton Strategies
+44 207 413 3161
Principal, Energy, Pöyry Management Consulting
+49 211 17 52 38 0
Head of Energy Strategy, Pöyry Management Consulting
+49 211 17 52 38 0
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Pöyry is an international consulting and engineering company. We deliver smart solutions across power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry's net sales in 2016 were EUR 530 million. The company's shares are quoted on Nasdaq Helsinki (POY1V). Approximately 5500 experts. 40 countries. 130 offices.