Using smart contracts and policies to reduce energy-related risk and inequality among households

forthcoming

To reduce carbon emissions, the green energy transition emphasizes incorporating variable renewable energy (VRE) sources and electrifying household energy consumption. This transition shifts households from being mere consumers to becoming producers and flexibility providers, playing a crucial in balancing VRE. The rise in energy prices due to the conflict in Ukraine has underscored a significant issue with this: while variable prices are vital for aligning demand with VRE supply, they also expose households to significant risks. These fluctuations contribute to inequality, as households' ability to absorb price shocks varies, which can undermine support for the transition. In 2023, 10.6% of European households struggled to keep homes warm, up from 6.9% in 2021, despite government measures like price caps. These interventions often lacked a solid data-driven foundation. To address these gaps, ENERPOL has developed an interdisciplinary research agenda focused on how households economically interact with energy systems during the green transition. This agenda will inform policies to mitigate inequality while preserving energy system efficiency. ENERPOL unites academic institutions from nine European countries with 16 non-academic organizations, including private energy companies, regulatory bodies, and think tanks. These collaborations enable unique data access, linking income and wealth data with energy consumption patterns. This consortium tests smart contracts and new policies, merging academic disciplines like operations research, economics, and energy studies. ENERPOL aims to provide insights for legislation, such as the EU electricity market reform, enhancing energy justice and aligning with European policy goals. This holistic view promotes energy justice, advocating for energy as a critical service in line with the European Pillar of Social Rights and UN SDGs.