Evaluating a Blockchain-Enabled Distributed Energy Trading Platform for Rural Electrification: A Case Study in East Shewa, Ethiopia
Main Article Content
Abstract
This study examines the feasibility and impact of a blockchain-enabled distributed energy trading platform designed to support rural electrification in Ethiopia’s East Shewa Zone. A simulation model was developed to evaluate how effectively blockchain technology can optimize solar photovoltaic (PV) energy use and facilitate efficient energy transactions within an off-grid rural community—including residential, agricultural, and public service users. Results show that the platform met approximately 94% of the community’s electricity demand while minimizing renewable energy curtailment. The integrated dynamic pricing mechanism successfully managed consumption during shortages by signaling scarcity through real-time price adjustments. The platform also demonstrated strong resilience under various stress scenarios, including seasonal variation, equipment failures, and network disruptions. These findings suggest that blockchain technology is a viable and efficient solution for improving energy access in rural areas and highlight opportunities to further enhance energy equity among diverse user groups.
Article Details
Articles published in International Journal of Sustainable Energy Planning and Management are following the license Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported (CC BY-NC-ND 3.0)
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License: Attribution - NonCommercial - NoDerivs (by-nc-nd). Further information about Creative Commons
Authors can archive post-print (final draft post-refereering) on personal websites or institutional repositories under these conditions:
- Publishers version cannot be stored elsewhere but on publishers homepage
- Published source must be acknowledged
- Must link to publisher version
References
[1] World Bank, Lighting up Eastern Africa: How greater access to energy is creating jobs and improving public services in rural Ethiopia, World Bank News (24 January 2025). https://www.worldbank.org/en/news/feature/2025/01/24/lighting-up-eastern-africa-access-to-energy-afe-rural-ethiopia
[2] World Bank, Tracking SDG7: The Energy Progress Report 2023, World Bank, Washington, DC (2023). https://trackingsdg7.esmap.org
[3] World Health Organization (WHO), Electricity in health-care facilities, WHO Fact sheet (2023). https://www.who.int/news-room/fact-sheets/detail/electricity-in-health-care-facilities
[4] B. Payton, Off-grid solar has the potential to transform healthcare delivery, so why is it in short supply?, Reuters (8 March 2024). https://www.reuters.com/sustainability/climate-energy/off-grid-solar-has-potential-transform-healthcare-delivery-so-why-is-it-short-2024-03-08/
[5] A. Groth, Socio-economic impacts of rural electrification in Tanzania. Int. J. Sustain. Energy Plan. Manag. 21 (2019). https://doi.org/10.5278/ijsepm.2019.21.6
[6] C. Dominguez, K. Orehounig, J. Carmeliet, Modelling of rural electrical appliances saturation in developing countries to project their electricity demand: A case study of Sub-Saharan Africa. Int. J. Sustain. Energy Plan. Manag. 22 (2019). https://doi.org/10.5278/ijsepm.2564
[7] A.I. Butu, P. Strachan, Navigating pathways for community renewable electricity in rural areas: Exploring stakeholders’ perspectives on Shape Community Project. Int. J. Sustain. Energy Plan. Manag. 33 (2022) 19–34. https://doi.org/10.5278/ijsepm.6813
[8] International Renewable Energy Agency (IRENA), Renewable Energy Market Analysis: Africa and Its Regions – A Summary for Policy Makers, IRENA and African Development Bank, Abu Dhabi (2022).
[9] H. Muhsen, A. Allahham, A. Al-Halhouli, M. Al-Mahmodi, Business model of peer-to-peer energy trading: A review of literature. Sustainability 14 (3) (2022) 1616. https://doi.org/10.3390/su14031616
[10] E. Mengelkamp, B. Notheisen, C. Beer, D. Dauer, C. Weinhardt, A blockchain-based smart grid: Towards sustainable local energy markets. Comput. Sci. Res. Dev. 33 (1–2) (2018) 207–214. https://doi.org/10.1007/s00450-017-0360-9
[11] M. Andoni, V. Robu, D. Flynn, S. Abram, D. Geach, D. Jenkins, P. McCallum, A. Peacock, Blockchain technology in the energy sector: A systematic review. Renew. Sustain. Energy Rev. 100 (2019) 143–174. https://doi.org/10.1016/j.rser.2018.10.014
[12] L. Tricarico, Community Energy Enterprises in the Distributed Energy Geography: A Review of Issues and Potential Approaches. Int. J. Sustain. Energy Plan. Manag. 18 (2018) 81–94. https://doi.org/10.5278/ijsepm.2018.18.6
[13] S. Schneider, A. Abraham, M. Yetano Roche, Community ownership models for decentralised renewables in the global south: a review and research agenda. Int. J. Sustain. Energy Plan. Manag. 46 (2025) 58–77. https://doi.org/10.54337/ijsepm.8621
[14] S. Feleke, A. Belay, T. Dagne, Solar radiation assessment for Ethiopian highlands. Renew. Energy 212 (2023) 1354–1362. https://doi.org/10.1016/j.renene.2023.06.040
[15] Central Statistical Agency (CSA), Population and Housing Census of Ethiopia, Ethiopian Government, Addis Ababa (2022).
[16] T. Tefera, Ethiopia’s community health infrastructure and rural education facilities: A statistical overview. Ethiopian Journal of Social Development 10 (2) (2022) 44–58.
[17] Wikimedia Commons, Map of Ethiopia highlighting East Shewa Zone, Wikimedia Foundation (2023). https://commons.wikimedia.org/
[18] International Energy Agency (IEA), Africa Energy Outlook 2022, IEA, Paris (2022). https://www.iea.org/reports/africa-energy-outlook-2022
[19] World Bank, Off-Grid Solar Market Trends Report 2020, World Bank, Washington, DC (2020a).
[20] M.T. Taye, A.T. Haile, A.G. Fekadu, P. Nakawuka, Effect of irrigation water withdrawal on the hydrology of the Lake Tana sub-basin. J. Hydrol. Reg. Stud. 38 (2021) 100961. https://doi.org/10.1016/j.ejrh.2021.100961
[21] S.C. Bhattacharyya, Rural Electrification Through Decentralised Off-grid Systems in Developing Countries, Springer (2013).
[22] P. Alstone, D. Gershenson, D.M. Kammen, Decentralized energy systems for clean electricity access. Nat. Clim. Change 5 (4) (2015) 305–314. https://doi.org/10.1038/nclimate2512
[23] P. Yadav, A.B. Haney, S. Marathe, Mobile-based PAYG solar energy models in Kenya: Adoption and impact. Energy Sustain. Dev. 52 (2019) 35–45. https://doi.org/10.1016/j.esd.2019.06.001
[24] S.R. Khandker, H.A. Samad, M. Asaduzzaman, Solar Home Systems for Rural Electrification: Experience in Bangladesh, World Bank, Washington, DC (2014). https://doi.org/10.1596/978-1-4648-0329-9
[25] L. Odarno et al., Accelerating Mini-Grid Deployment in Sub-Saharan Africa: Lessons from Tanzania, World Resources Institute (WRI) and TaTEDO, Washington, DC (2016).
[26] K. Lee, E. Miguel, C. Wolfram, Experimental evidence on the demand for and costs of rural electrification, National Bureau of Economic Research (NBER) Working Paper No. 22292 (2016). https://doi.org/10.3386/w22292
[27] M. Kouhizadeh, S. Saberi, J. Sarkis, Blockchain technology and the sustainable supply chain: Theoretically exploring adoption barriers. Int. J. Prod. Econ. 231 (2021) 107831. https://doi.org/10.1016/j.ijpe.2020.107831
[28] M. Zedan, M. Nour, G. Shabib, L. Nasrat, A.A. Ali, Review of peer-to-peer energy trading: Advances and challenges. e-Prime – Advances in Electrical Engineering, Electronics and Energy 10 (2024) 100778. https://doi.org/10.1016/j.prime.2024.100778
[29] Food and Agriculture Organization (FAO), Small-Scale Irrigation Systems in Ethiopia: Status and Opportunities, FAO, Rome (2021).
[30] A.K. Kuno, N. Begna, F. Mebratu, A feasibility analysis of PV-based off-grid rural electrification for a pastoral settlement in Ethiopia. Energy 282 (2023) 129127. https://doi.org/10.1016/j.energy.2023.129127
[31] G. Prinsloo, Scoping exercise to determine load profile archetype reference shapes for solar co-generation models in isolated off-grid rural African villages. J. Energy S. Afr. 27 (3) (2016) 11–27. https://doi.org/10.17159/2413-3051/2016/v27i3a1375
[32] World Bank, Ethiopia Agricultural Irrigation Overview, World Bank, Washington, DC (2020b).
[33] Energypedia, Energy for rural health centers, Energypedia (n.d.). https://energypedia.info/wiki/Energy_for_Rural_Health_Centers
[34] A. Aoun, M. Adda, A. Ilinca, M. Ghandour, H. Ibrahim, Comparison between blockchain P2P energy trading and conventional incentive mechanisms for distributed energy resources—A rural microgrid use case study. Appl. Sci. 14 (17) (2024) 7618. https://doi.org/10.3390/app14177618
[35] H. Lund, P.A. Østergaard, D. Connolly, I. Ridjan, B.V. Mathiesen, F. Hvelplund, P. Sorknæs, Energy Storage and Smart Energy Systems. Int. J. Sustain. Energy Plan. Manag. 11 (2016) 3–14. https://doi.org/10.5278/ijsepm.2016.11.2
[36] Å.G. Tveten, T.F. Bolkesjø, I. Ilieva, Increased demand-side flexibility: market effects and impacts on variable renewable energy integration. Int. J. Sustain. Energy Plan. Manag. 11 (2016) 33–50. https://doi.org/10.5278/ijsepm.2016.11.4
