Contemporary European Studies

CES-DUTH ΦΑΚΕΛΟΣ ΕΝΕΡΓΕΙΑ 2/2020

Blockchain in the Energy Sector

Μαριλένα Τσιλιπάκου, Δικηγόρος, ΜΔΕ Διεθνές και Ευρωπαϊκό Δίκαιο της Ενέργειας

(Το άρθρο δημοσιεύτηκε στο ηλεκτρονικό περιοδικό expressis Verbis Law Journal 4/2020 σ. 26, https://issuu.com/elsa_thessaloniki/docs/4-4)

Summary

The energy sector is undergoing a significant transformation; decarbonisation, decentralisation and digitalisation are on the forefront. The realisation of these goals requires the use of the right tools and the cooperation among different scientific areas. Blockchain technology can contribute to the participation of consumers in the energy production, the fostering of RES and the flexibility of the energy system.

The aim of this article is to analyse the function of blockchain technology, why and how it could be useful in achieving a more competitive, liberalised and environmentally friendly energy market. People can participate in real time energy transactions through selling and purchasing excess amounts of their energy. They are encouraged to produce their own energy from renewable resources because they can sell energy at the peak of demand and maximise their profit. What is more existent energy storage technology based on blockchain can help in achieving a biggest share of RES in the energy mix given their variable character.

Furthermore, we refer to the legal challenges that arise from the application of blockchain in the energy system. First of all, the most crucial legal concerns are around smart contracts which are computer-coded agreements automatically executed when specific conditions are met. When combined with blockchain technology, smart contracts can also be used in distributed ledgers and, thus, cover a wider range of transactions. One question is whether smart contracts constitute ‘legal contracts’ and in such sense whether they are legally binding or not. In addition, we discuss the issue of applicable law and jurisdiction under smart contracts when the latter do not include a specific agreement. Moreover, due to the fact that one of blockchain’s main characteristics is its immutable character, this article also presents the risks that arise in the light of the need of overturning the agreement or renegotiate on its terms.

Finally, the impact of smart technology and blockchain on data protection falls under the scope of this article. In particular, there is a tension point between blockchain and GDPR that lies in the immutable as well as the decentralized character of blockchain and the distribution of stored data to all participants. The EU has taken seriously into account the need of further legislative approach and we can expect the issuance of ad hoc studies and measures.

Μαριλένα Τσιλιπάκου, Δικηγόρος, 
ΜΔΕ Διεθνές & Ευρωπαϊκό Δίκαιο της Ενέργειας 
marilenatsilipakou@gmail.com