Blockchain application in P2P energy markets: social and legal aspects

Flexible and distributed energy markets are a reality that is progressively reaching many regions. Despite their clear benefits, they should be accepted by the prosumers. Additionally, blockchain technology and smart contracts have been characterised as a technological enabler for the energy sector and P2P Energy Markets (PEM). However, little research has been done to explore blockchain's user-centred perspective. Therefore, this paper analyses the reluctance and/or concerns of prosumers regarding smart contracts, and investigates their perception on blockchain within PEMs. The authors present the results of a survey conducted across several European countries addressing the implementation of automated trading systems and analysing the adoption of smart contracts. Considering that the main survey outcomes are related to the regulation and legislation uncertainty around blockchain usage, this paper explores also the fit of smart contracts from a legal perspective. Additionally, a set of recommendations to be used as the basis for the design and development of PEMs is delivered, aiming to adopt blockchain and smart contracts. As a key take-away, the authors confirm the crucial role that blockchain will play in the deployment of fair, secure, flexible and distributed energy markets by ensuring transparency in the exchange of information between prosumers and energy stakeholders.