Digital contracts in renewable energy markets: challenges and opportunities
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Abstract
As the fight against climate change becomes increasingly urgent and the share of renewable energy sources (RES) in the global energy mix continues to grow, there is a need to improve market operations and ensure transparency of transactions. One of the tools that can help achieve these goals is digital contracts, in particular smart contracts based on blockchain technology. The purpose of this article is to explore the challenges and opportunities associated with the introduction of digital contracts in RES markets. Particular attention is paid to analysing the technological, economic and legal aspects of their use, as well as developing recommendations for market participants and regulators. The study used comparative analysis methods to compare traditional and digital contracts, system analysis to identify the main challenges and opportunities, and empirical methods to collect and analyse data on the current state of the RES market. The analysis was based on statistical data, scientific publications and practical examples of digital contracts. The study results show that the introduction of digital contracts in the RES sector has significant potential to improve the efficiency of market processes. Smart contracts can automate the fulfilment of contractual terms, reduce transaction costs and minimise fraud risks, which increases trust between counterparties. However, market participants face a number of challenges, such as technical barriers, the need to develop the legal framework and cybersecurity. Digital contracts have great potential to improve the functioning of renewable energy markets by automating processes and increasing transparency. They can become a key tool in ensuring the sustainable development and integration of renewable energy sources.
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