In an Energy Central article, Navigant Research discusses how utilities can help blockchain startups succeed in a challenging industry
Blockchain, once thought to be the new disruptor of the energy industry, is now being shaped by incumbent utilities and their existing rules and regulations.
In an Energy Central article, Navigant Research’s Jonathon de Villier, research analyst, discussed how utilities and new blockchain companies can benefit from working together.
As the energy transformation occurs, utilities need to make sure they are continuing to provide safe, reliable power while acting within a system of regulatory constraints. Additionally, technology like blockchain needs to make sure it fits into both the regulatory and existing utility systems requirements to be successful.
“This reality has hit energy blockchain vendors hard,” de Villier said. “Startups developing blockchain-based solutions have found themselves dependent on existing market structures and regulatory frameworks.”
Therefore, de Villier believes startups that collaborate with utilities are more likely to survive. He explained how utilities can provide financial resources and industry guidance to blockchain vendors. Additionally, he noted that blockchain startups can help utilities by fostering innovation as the energy industry transforms.
"The energy landscape is changing, and as grid systems become more distributed, decentralized, and dynamic, utilities must challenge many of the assumptions that made them successful under the old paradigm," de Villier said. "Partnerships between vendors and utilities will have a competitive advantage in terms of scalability, commercialization, and overall industry impact."