Blockchain in Energy Market Research Report - Forecast to 2030

Impact of COVID-19 on the Global Blockchain in Energy Market

The energy industry has been transforming due to factors such as automation, digitalization, and decentralization. This results in creating new business models to transform the power industry efficiently. Nowadays, blockchains in the energy sector have been steadily introduced in utilities to increase operational efficiency. The need for decentralized generation, energy storage systems, meter services, and energy-saving comforts have increased the awareness of blockchains in the energy sector to help unlock the demand-side flexibility. Blockchain consultants analyze energy resources and electrical equipment, including renewable and non-renewable. The analysis helps utilities in energy trading¸ regulatory reporting¸ and meeting the compliance needs.

FIGURE: DECLINE IN DEMAND FOR ELECTRICITY IN MAJOR ECONOMIES SINCE THE LOCKDOWN

However, COVID-19 has led to a decline in the growth of the energy industry. The industry has witnessed a falling demand and price reduction trend across the world. Various regions, including Europe, have been heavily impacted, recording all-time low electricity prices in the first quarter of FY’2020. Moreover, due to the severity of this virus, many industries are focusing only on essential work. This has led to a pause in blockchain service installations in the energy industry. Some of the common difficulties faced by manufacturing companies across the globe include disruptions in the supply chain, low revenue generation due to reduced sales, inability to operate at 100% due to social distancing norms, and lack of human resources. The decline in demand for manufactured goods and industrial automation has directly impacted the demand for electricity. However, as economies are planning to resume business to increase revenue generation gradually, the demand for blockchain in the energy sector is expected to resume its average growth rate by early 2021.

 Source: Primary Experts, Secondary Sources, and MRFR Analysis

Source: IEA