BLOCKCHAIN for the Energy Transition: Rule of Code versus Rule of - - PowerPoint PPT Presentation
BLOCKCHAIN for the Energy Transition: Rule of Code versus Rule of Law? Tamara Favaro Research Fellow at UCL Centre for Blockchain Technologies London Member of the BABEL Steering Committee - Florence Tilburg University 16 th May, 2019
Tamara Favaro
Research Fellow at UCL Centre for Blockchain Technologies – London Member of the BABEL Steering Committee - Florence Tilburg University – 16th May, 2019
▪ Context xt ▪ Resear earch h Quest stions ions ▪ Regul ulat ator
ures es ▪ Possibl ssible e Blockc kcha hain in app pplic ications ations ▪ Conc nclusions usions
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Three fundamental concepts
kchain:
: a public, immutable, transparent distributed ledger
t contrac tract: : a line of code that automatically execute a specific function
kchain: : is it always ays a g good idea? a?
decentralization is not a panacea
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Source: Emerton.co
▪ How w could Techn hnol
, in n the he form of Blockc kcha hain, in, affect t Market et Regulati lation
▪ Wha hat are the he po possible sible int nteractions actions between ween Blockc kcha hain in Code and Conventi ntional
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Why do we (still) need to regulate the energy liberalized market?
▪ Market ket failures ures (e.g., information asymmetries) ▪ Energy gy Trilemma ma
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Source: World Economic Council, 2016
▪ Key objectives: the “Four D”
▫ Decarbonisation, Digitalisation, Decentralisation, Democratisation
▪ Consumer at the core
▫ Active consumers
▫ Generate, store, consume and sell electricity ▫ Non-discriminatory access to the market
▫ Passive consumers
▫ Only consume electricity ▫ Access to price comparison tools ▫ Wide choice of payment methods
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Possible interactions between Blockchain Code and Conventional Code
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▪ At least 40% cuts in greenhouse nhouse gas emissions ssions (from 1990 levels) ▪ At least 32% share for renewable able energy ▪ At least 32.5% improvement in ene nergy gy efficienc iency
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▪ Need to combine different legislation ▪ Market and regulatory failures ▪ Difficult coordination between contiguous policies
electricity in transport sector? 10
▪ Main Main idea idea: we can use the Blockchain not only to trace already ready existin xisting ce certifi tificates cates (like guarantees of origin and carbon emissions) but also to rep eplac lace the the nee eed
this kind
certificates
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▪ SMART CONTRACT AS AN ENTRY POINT FOR REGULATORS ▪ Could P2P Trading also represent a form of efficient, harmonic cooperation between rule of code and rule of law? ▪ Could Blockchain represent a new equilibrium in the “State-Market pendulum”?
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A POSSIBLE REPLACEMENT OF EX ANTE REGULATION and a new form of interaction between Rule of Code and Rule of Law
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Peer-to-peer trading as a replacement of public subsidies
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Peer-to-peer trading as a replacement of carbon trading
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Peer-to-peer trading as a replacement of Guarantees of origin
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