Towards A Blockchain-Based Revenue Distribution Mechanism for Electrical Generators

Renewable energy generators have increased in number in recent years to meet the demand for the green transition. However, the inconsistent nature of the output from these sources, coupled with fluctuation in demand and market spot prices produces significant financial risk for renewable generators. An inflexible market structure exacerbates these effects, and renewable generators may benefit from a remodelled revenue distribution system. A potential solution to these problems could lie in distributed ledger technology, specifically blockchain. Advances in this technology have given rise to smart contracts---autonomous, immutable and transparent computer programs that reside on the blockchain network---that can enable new business models. This paper looks to utilise advances in blockchain smart contract technology to create a novel system for managing revenue streams. The paradigm suggests tokenising the right to a generator's regular market remuneration, creating a new financial tool for stakeholders. A blockchain program consisting of a smart contract is developed, serving as an investigation into the granular workings of such a system. This smart contract manages generators and stakeholders, while directing the movement of tokens and currency. The code is deployed to the blockchain, and tested with simulated transactions to demonstrate the effectiveness of the mechanism. Further development of such a solution, specifically revenue sharing between grouped generators, could offer significant stability to financial models for renewable energy generators.

Poster: http://hdl.handle.net/10197/25740