US Congressional Research Service Explores Blockchain Implementation in Energy

The US Congressional Research Service released a report that addresses the potential advantages and disadvantages of using blockchain-based solutions for the energy sector.

Congressional Research Service published its findings in a report entitled Bitcoin, Blockchain, and the Energy Sector. In the report, the research team noted that the launch of a blockchain solution that allows consumers to purchase energy services within a distributed system can make the energy system more transparent, efficient and flexible for the consumer. However, the release of such a service is fraught with potential issues related to distribution management, as well as cybersecurity.

The report cites the results of a survey conducted by the US Electric Power Research Institute. During the survey, 77% of respondents said that in the energy sector there are no relevant standards for implementing blockchain solutions. The report also says utilities in the United States are only doing research or testing blockchain-based programs, while some European utilities have been using the technology for more than a year.

In particular, US problems are caused by the fact that state and federal authorities have different responsibilities in relation to the implementation of energy laws. The report notes that states generally have jurisdiction over retail electricity transactions, while the Federal Energy Regulatory Commission oversees bulk transactions and the transmission of electricity for interstate commerce.

Thus, it is imperative for the sector to have a clear regulatory framework regarding whether distributed energy operations will be considered resale or wholesale.

Recently it became known that the US Department of Energy allocated
$ 1.05 million for the development of a blockchain platform for energy distribution management. In April, it was reported that the Ministry of Energy will use the blockchain at power plants to combat cyber attacks. Last year, the ministry collaborated with BlockCypher to develop solutions to enable transactions on multiple blockchains. In addition, in January, the Ministry announced federal funding of $ 4.8 million for university research in new technologies, including the blockchain.