Skip to main content
SpringerLink
Log in

The Blockchain Marketplace as the Fifth Type of Electricity Market

  • Conference paper
  • First Online:
Smart Grid and Innovative Frontiers in Telecommunications (SmartGIFT 2018)

Included in the following conference series:

Abstract

This paper tackles today’s unprecedented challenges of enabling and stimulating multiple energy stakeholders to have a more active participation in the smart grid electricity market. The research extends the existing four archetypes of orchestrator-driven business models for the electricity market and proposes a fifth type of electricity market, the Blockchain Marketplace. The key novelty of the paper is to expand the electricity market architecture and design from centralization and pseudo-decentralization to full decentralization, enabled by the blockchain. The study not only broadens the smart grid and electricity market literature but also contributes to the theoretical development of the business model and organization study domains with a systemic approach.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Wang, J., Conejo, A.J., Wang, C., Yan, J.: Smart grids, renewable energy integration, and climate change mitigation - future electric energy systems. Appl. Energy 96, 1–3 (2012)

    Article  Google Scholar 

  2. World Bank: Access to Electricity (Percentage of Population). http://data.worldbank.org/indicator/EG.ELC.ACCS.ZS. Accessed 22 Nov 2017

  3. Mohamed, M.A., Eltamaly, A.M., Farh, H.M., Alolah, A.I.: Energy management and renewable energy integration in smart grid system. In: 2015 IEEE International Conference on Smart Energy Grid Engineering, pp. 1–6 (2015)

    Google Scholar 

  4. Nistor, S., Wu, J., Sooriyabandara, M., Ekanayake, J.: Capability of smart appliances to provide reserve services. Appl. Energy 138, 590–597 (2015)

    Article  Google Scholar 

  5. Hasse, F., von Perfall, A., Hillebrand, T., Smole, E., Lay, L., Charlet, M.: Blockchain - an opportunity for energy producers and consumers? (2016)

    Google Scholar 

  6. Hall, S., Roelich, K.: Business model innovation in electricity supply markets: the role of complex value in the United Kingdom. Energy Policy 92, 286–298 (2016)

    Article  Google Scholar 

  7. Xu, Y., Ahokangas, P., Reuter, E.: EaaS: electricity as a service? In: 24th Nordic Academy of Management Conference, pp. 1–22. NFF, Bodø (2017)

    Google Scholar 

  8. European Commission: Clean Energy for All Europeans. Brussels (2016)

    Google Scholar 

  9. Nakamoto, S.: Bitcoin: A Peer-to-Peer Electronic Cash System (2008). https://bitcoin.org/bitcoin.pdf. Accessed 27 Nov 2017

  10. Antonopoulos, A.M.: Mastering Bitcoin: Unlocking Digital Cryptocurrencies. O’Reilly Media Inc., Sebastopol (2014)

    Google Scholar 

  11. Yrjölä, S.: Analysis of blockchain use cases in the citizens broadband radio service spectrum sharing concept. In: Marques, P., et al. (eds.) CrownCom 2017. LNICST, vol. 228, pp. 128–139. Springer, Cham (2018). https://doi.org/10.1007/978-3-319-76207-4_11

    Chapter  Google Scholar 

  12. Zhang, Y., Wen, J.: The IoT electric business model: using blockchain technology for the internet of things. Peer-to-Peer Netw. Appl. 10, 983–994 (2017)

    Article  Google Scholar 

  13. Basden, J., Cottrell, M.: How utilities are using blockchain to modernize the grid. Harv. Bus. Rev. 2–5 (2017)

    Google Scholar 

  14. Mazhelis, O., Warma, H., Leminen, S., Ahokangas, P., Pussinen, P., Rajahonka, M., Siuruainen, R., Okkonen, H., Shveykovskiy, A., Myllykoski, J.: Internet-of-Things Market, Value Networks, and Business Models: State of the Art Report, Jyväskylä (2013)

    Google Scholar 

  15. Demil, B., Lecocq, X.: Business model evolution: in search of dynamic consistency. Long Range Plann. 43, 227–246 (2010)

    Article  Google Scholar 

  16. Johnson, M., Christensen, C.M., Kagermann, H.: Reinventing Your Business Model. Harv. Bus. Rev. 50–60 (2008)

    Google Scholar 

  17. Osterwalder, A., Pigneur, Y.: Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. Wiley, Hoboken (2010)

    Google Scholar 

  18. Chesbrough, H.: Business model innovation: opportunities and barriers. Long Range Plann. 43, 354–363 (2010)

    Article  Google Scholar 

  19. Zott, C., Amit, R.: The business model: a theoretically anchored robust construct for strategic analysis. Strateg. Organ. 1–20 (2013)

    Google Scholar 

  20. Amit, R., Zott, C.: Crafting business architecture: the antecedents of business model design. Strateg. Entrep. J. 9, 331–350 (2015)

    Article  Google Scholar 

  21. Biloslavo, R., Bagnoli, C., Edgar, D.: An eco-critical perspective on business models: the value triangle as an approach to closing the sustainability gap. J. Clean. Prod. 174, 746–762 (2017)

    Article  Google Scholar 

  22. Moqaddamerad, S., Xu, Y., Iivari, M., Ahokangas, P.: Business models based on co-opetition in a hyper-connected era: the case of 5G-enabled smart grids. In: Afsarmanesh, H., Camarinha-Matos, L.M., Lucas Soares, A. (eds.) PRO-VE 2016. IAICT, vol. 480, pp. 559–568. Springer, Cham (2016). https://doi.org/10.1007/978-3-319-45390-3_47

    Chapter  Google Scholar 

  23. Holzner, L., Bohnsack, R.: Business model adaptation mechanisms in the internationalization process: the case of energy firms. In: 43rd European International Business Academy Conference, Milan, pp. 1–39 (2017)

    Google Scholar 

  24. Magretta, J.: Why business models matter. Harv. Bus. Rev. 80, 86–87 (2002)

    Google Scholar 

  25. Brandenburger, A.M., Stuart, H.W.J.: Value based business strategy. J. Econ. Manag. Strateg. 5, 5–24 (1996)

    Article  Google Scholar 

  26. Amit, R., Han, X.: Value creation through novel resource configurations in a digitally enabled world. Strateg. Entrep. J. 11, 228–242 (2017)

    Article  Google Scholar 

  27. Sirmon, D.G., Hitt, M.A., Ireland, R.D., Gilbert, B.A.: Resource orchestration to create competitive advantage. J. Manag. 37, 1390–1412 (2011)

    Google Scholar 

  28. Wassmer, U., Dussauge, P.: Network resource stocks and flows: how do alliance portfolios affect the value of new alliance formations? Strateg. Manag. J. 33, 871–883 (2012)

    Article  Google Scholar 

  29. Adner, R., Kapoor, R.: Value creation in innovation ecosystems: how the structure of technological interdependence affects firm performance in new technology generations. Strateg. Manag. J. 31, 306–333 (2010)

    Article  Google Scholar 

  30. Löbbers, J., von Hoffen, M., Becker, J.: Business development in the sharing economy: a business model generation framework. In: 2017 IEEE 19th Conference on Business Informatics (CBI), pp. 237–246. IEEE, Thessaloniki (2017)

    Google Scholar 

  31. Malhotra, A., Van Alstyne, M.: The dark side of the sharing economy … and how to lighten it. Commun. ACM 57, 24–27 (2014)

    Article  Google Scholar 

  32. Botsman, R., Rogers, R.: What’s Mine Is Yours - How Collaborative Consumption Is Changing the Way We Live. Harper Collins Inc., New York (2010)

    Google Scholar 

  33. Botsman, R.: The sharing economy lacks a shared definition. http://www.fastcoexist.com/3022028/the-sharing-economy-lacks-a-shared-definition#1. Accessed 22 Nov 2017

  34. Catalini, C., Gans, J.S.: Some simple economics of the blockchain. SSRN Electron. J. (2017)

    Google Scholar 

  35. Vukolić, M.: The quest for scalable blockchain fabric: proof-of-work vs. BFT replication. In: Camenisch, J., Kesdoğan, D. (eds.) iNetSec 2015. LNCS, vol. 9591, pp. 112–125. Springer, Cham (2016). https://doi.org/10.1007/978-3-319-39028-4_9

    Chapter  Google Scholar 

  36. Kiayias, A., Russell, A., David, B., Oliynykov, R.: A Provably Secure Proof-of-Stake Blockchain Protocol (2016)

    Google Scholar 

  37. Christidis, K., Devetsikiotis, M.: Blockchains and smart contracts for the internet of things. IEEE Access 4, 2292–2303 (2016)

    Article  Google Scholar 

  38. Yli-Huumo, J., Ko, D., Choi, S., Park, S., Smolander, K.: Where is current research on blockchain technology? A systematic review. PLoS ONE 11, 1–27 (2016)

    Article  Google Scholar 

  39. Szabo, N.: Smart Contracts. https://archive.is/X3lR2. Accessed 22 Mar 2018

  40. Baliga, A.: The Blockchain Landscape Office of the CTO (2016)

    Google Scholar 

  41. Meisel, M., Fotiadis, L., Wilker, S., Treytl, A., Sauter, T.: Blockchain applications in microgrids: an overview of current projects and concepts Andrija. In: IECON 2017 - 43rd Annual Conference IEEE Industrial Electronics Society, pp. 6153–6158 (2017)

    Google Scholar 

  42. Mengelkamp, E., Gärttner, J., Rock, K., Kessler, S., Orsini, L., Weinhardt, C.: Designing microgrid energy markets: a case study: the Brooklyn Microgrid. Appl. Energy 210, 870–880 (2018)

    Article  Google Scholar 

  43. Ioannis, K., Raimondo, G., Dimitrios, G., Gioia Rosanna, D., Georgios, K., Gary, S., Ricardo, N., Igor, N.-F.: Blockchain in Energy Communities. Brussels (2017)

    Google Scholar 

  44. Bahari, N., Maniak, R., Fernandez, V.: Ecosystem business model design. In: XXIVe Conférence Internationale de Management Stratégique, pp. 1–18. AIMS, Paris (2015)

    Google Scholar 

  45. Collier, D., Mahoney, J.: Insights and pitfalls: selection bias in qualitative research. World Polit. 49, 56–91 (1996)

    Article  Google Scholar 

  46. Bakos, Y.: The emerging role of electronic marketplaces on the Internet. Commun. ACM 41, 35–42 (1998)

    Article  Google Scholar 

  47. Weiller, C.M., Pollitt, M.G.: Cambridge Working Platform Markets and Energy Services, Cambridge (2013)

    Google Scholar 

  48. van der Veen, R.A.C., Hakvoort, R.A.: The electricity balancing market: exploring the design challenge. Util. Policy 43, 186–194 (2016)

    Article  Google Scholar 

  49. Cai, R.: Trust and Transaction Costs in Industrial Districts (2004). http://scholar.lib.vt.edu/theses/available/etd-05222004-232528/. Accessed 27 Nov 2017

  50. Zyskind, G., Nathan, O., Pentland, A.S.: Decentralizing privacy: using blockchain to protect personal data. In: Proceedings - 2015 IEEE Security and Privacy Workshops, SPW 2015, pp. 180–184. IEEE Computer Society (2015)

    Google Scholar 

  51. Chen, Z., Yu, Z., Duan, Z., Hu, K.: Inter-blockchain communication. DEStech Trans. Comput. Sci. Eng. 448–454 (2017)

    Google Scholar 

  52. Hitt, M.A., Ireland, R.D., Sirmon, D.G., Trahms, C.A.: Strategic entrepreneurship: creating value for individuals, organizations, and society. Strateg. Entrep. J. 2, 175–190 (2008)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Oulu Business School, University of Oulu, Finland Pentti Kaiteran katu 1, P.O. Box 4600, 90014, Oulu, Finland

    Yueqiang Xu, Petri Ahokangas & Timo Koivumäki

  2. Nokia, Kaapelitie 4, 90620, Oulu, Finland

    Seppo Yrjölä

Authors
  1. Yueqiang Xu
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Petri Ahokangas
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Seppo Yrjölä
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Timo Koivumäki
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Yueqiang Xu .

Editor information

Editors and Affiliations

  1. Auckland University of Technology, Auckland, New Zealand

    Peter Han Joo Chong

  2. Auckland University of Technology, Auckland, New Zealand

    Boon-Chong Seet

  3. School of Electronic Engineering and Computer Science, Queen Mary University of London, London, United Kingdom

    Michael Chai

  4. Auckland City Hospital, Auckland, New Zealand

    Saeed Ur Rehman

Rights and permissions

Reprints and permissions

Copyright information

© 2018 ICST Institute for Computer Sciences, Social Informatics and Telecommunications Engineering

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Xu, Y., Ahokangas, P., Yrjölä, S., Koivumäki, T. (2018). The Blockchain Marketplace as the Fifth Type of Electricity Market. In: Chong, P., Seet, BC., Chai, M., Rehman, S. (eds) Smart Grid and Innovative Frontiers in Telecommunications. SmartGIFT 2018. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering, vol 245. Springer, Cham. https://doi.org/10.1007/978-3-319-94965-9_28

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-94965-9_28

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-94964-2

  • Online ISBN: 978-3-319-94965-9

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation