A benchmark study

: exploring viable Web3 solutions in the utility sector

Abstract

This study explores the viability of applying Web3 use-cases within the utility sector. The energy sector is undergoing a transition characterized by decentralization, decarbonization, and digitalization. The complexity involved in this transformation motivates utility companies to seek novel methods and technologies, such as Web3 and blockchain applications. Since no market standards were present yet, an exploration of possibilities was necessary. This study identified the use-cases present within the energy market, evaluated the benefits and constraints, and analysed the viability of implementing Web3 in the utility sector. The study is conducted through interviews with Web3 experts, an extensive literature review, and was analysed using a generic sectoral benchmark. Eight use-cases were identified within the study. Among these use-cases, data governance applications appear to be the most viable, as no fundamental constraints were detected, and the benefits contributed to significant process efficiency. Other use-cases faced considerable limitations in terms of technology and regulations. However, it is noted that these limitations may be resolved in the future as the technology and corresponding concepts are still in their infancy. Consequently, there was a lack of consensus between industry experts and the literature, making it difficult to determine the extent to which Web3 solutions can be adopted by utility companies in the long run.

Date of Award	4 Jul 2023
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Rute Xavier (Supervisor)