Blockchain, Data Protection and P2P Energy Trading: A Review on Legal and Economic Challenges

Blockchain technology (BCT) enables the automated execution of smart contracts in peer-to-peer (P2P) energy trading. BCT-based P2P platforms allow the sharing, exchange and trade of energy among consumers or prosumers as peers, fostering the decarbonization, decentralization and digitalization of th...

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Bibliographic Details
Published in:Sustainability 2022-12, Vol.14 (23), p.16305
Main Authors: Chiarini, Alessandra, Compagnucci, Lorenzo
Format: Article
Language:English
Subjects:
Alternative energy sources
Blockchain
Data security
Digital economy
Digitization
Economic aspects
Economic research
Energy
Energy consumption
Energy industry
Energy trading
General Data Protection Regulation
Households
Interdisciplinary aspects
Internet of Things
Legal research
Observatories
Personal information
Players
Privacy
Reviews
Technology
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Summary:Blockchain technology (BCT) enables the automated execution of smart contracts in peer-to-peer (P2P) energy trading. BCT-based P2P platforms allow the sharing, exchange and trade of energy among consumers or prosumers as peers, fostering the decarbonization, decentralization and digitalization of the energy industry. On the other hand, BCT-based P2P energy trading relies on the collection, storage and processing of a large amount of user data, posing interdisciplinary challenges, including user anonymity, privacy, the governance of BCT systems and the role of energy market players. First, this paper seeks to review the state of the art of European data protection law and regulations by focusing on BCT compliance with the General Data Protection Regulation (GDPR) of 2018. Second, it explores both the potentials and the challenges of BCT-based P2P energy trading from a legal–economic perspective. To do so, the paper adopts an interdisciplinary approach which intertwines both law and economics, by reviewing the recent literature on BCT and P2P energy trading. Findings have revealed that the deployment of BCT-based P2P energy trading is still in its pilot stage because of technology immaturity, data protection uncertainty, incomplete disintermediation and the lack of both user awareness and collaboration among market players. Drawing on the review, the paper also proposes a selection of solutions to foster the implementation of BCT-based P2P energy trading.
ISSN:2071-1050
2071-1050
DOI:10.3390/su142316305