Regulating blockchain for sustainability? The critical relationship between digital innovation, regulation, and electricity governance

Abstract

Blockchain technology has found several innovative applications in the electricity industry. However, its potential has still to be discovered. This is partly due to the role that regulation plays in electricity markets. To be introduced, experimented with, and eventually adopted on a commercial scale, blockchain-supported innovations need to fit the existing regulatory framework or the rules to be reshaped or updated. We focus on energy regulators' possible responses to the blockchain-enhanced market operations (both from the incumbents and potential newcomers), suggesting a monitoring mechanism that can support innovation.