Guillaume Atoch Gil & Marinella Ginevra
- Key definitions
A. Energy Transition
The energy transition is what economists and policy-makers call the global shift from fossil fuel-based energy systems (coal, oil, gas) to sustainable and renewable energy sources (solar, wind, hydro, etc.). The principal aim of this transition is to reduce greenhouse gas emissions and thus mitigate the effects of climate change.
B. Tokenization
Tokenization is the process of converting rights to an asset into a digital token on a blockchain. These tokens can represent a wide range of real-world or digital assets — such as energy credits, solar panels, or even future cash flows from renewable energy projects. In the context of the energy transition, tokenization can be used in a variety of ways. For instance, it can be used to fractionalize ownership of renewable energy infrastructure (like solar farms). It can also represent carbon credits or renewable energy certificates in a transparent, tradable form.
C. Decentralized Finance (DeFi)
DeFi refers to financial services — including lending, borrowing, trading, and investing — that operate on blockchain networks without traditional intermediaries (like banks or brokers). DeFi has been applied to accelerating the energy transition in multiple ways: Enabling community-driven funding of clean energy projects, providing access to capital for small or off-grid renewable energy producers, and creating peer-to-peer energy trading platforms, among others.
- Finance and Energy Transition
Finance has become a central force shaping the direction and pace of the global energy transition, acting not merely as a source of capital but as a gatekeeper that determines which technologies and companies get to scale. Over the past decade, investors have increasingly recognized that climate risk is financial risk, leading to a gradual reallocation of capital from fossil fuel assets to cleaner alternatives like wind, solar, and battery storage. Green bonds, climate-focused investment funds, and sustainability-linked loans have emerged as key tools for channeling money into the energy sector’s decarbonization, often incentivizing performance-based outcomes. At the same time, public institutions—such as multilateral development banks and sovereign wealth funds—have stepped in with blended finance models to de-risk clean energy projects, particularly in emerging markets where commercial viability remains fragile. This combination of public and private finance has enabled renewable projects to flourish in regions that were previously ignored by traditional capital markets. Meanwhile, shareholder activism and stricter environmental, social, and governance (ESG) benchmarks are pressuring utilities and energy firms to disclose emissions, adopt credible net-zero strategies, and accelerate their shift away from coal and oil. Yet despite these advances, financing flows are still far from sufficient. Fossil fuels continue to receive a disproportionate share of subsidies and investments, and many so-called green financial products lack transparency or rigorous impact measurement. As a result, finance is both a catalyst and a constraint—pushing the energy sector toward cleaner practices, but still entangled in the inertia of legacy systems. Bridging this gap requires not only more capital, but smarter deployment aligned with long-term climate goals, clearer accountability, and a willingness from financiers to take risks on innovation and equity rather than just returns.
- Blockchain technology integration for the energy transition
Blockchain is a decentralized digital ledger system that records transactions through all of its users, in such a manner that records cannot be altered retroactively, with its key advantages usually being cited as: transparency, immutability, and decentralization.
By integrating blockchain into the energy transition, a wide array of innovative solutions can be thought of to accelerate this shift toward decentralized, low-carbon energy systems. First off, enabling peer-to-peer energy trading through blockchain technologies allows individuals and communities with renewable energy sources, such as rooftop solar panels, to sell surplus electricity directly to others, reducing reliance on centralized utilities and promoting local energy autonomy. Secondly, blockchain technology also enhances transparency and trust in carbon and renewable energy certificate markets, providing tamper-proof, traceable registries that mitigate greenwashing and facilitate international trading. Lastly, blockchain enables tokenized crowdfunding models, allowing small investors to participate in renewable infrastructure projects and receive returns via decentralized finance (DeFi) platforms, thus democratizing access to sustainable investment.
Practically speaking, smart contracts on blockchain can automate payments and dynamic pricing for energy production, carbon savings, or subsidies, making energy markets more efficient and responsive. Finally, blockchain supports better grid management by securely recording energy flows and consumption data, helping to integrate distributed energy resources and optimize demand-response mechanisms. Altogether, blockchain technology has the potential to complement the energy transition in such a manner to foster transparency, decentralization, and inclusive participation, thereby facilitating the shift to decarbonized energies.
- SunContract
In the evolving landscape of decentralized finance (DeFi), blockchain technology and tokenization are emerging as pivotal tools in steering the global energy sector toward a more sustainable and equitable future. By enabling transparent, peer-to-peer transactions and democratizing access to energy markets, these technologies are dismantling traditional barriers and fostering a more inclusive approach to energy consumption and production.
A prime example of this transformative potential is SunContract, a blockchain-based platform that facilitates direct energy trading between producers and consumers. Operating primarily in Slovenia, SunContract allows individuals and businesses to buy and sell renewable energy without the need for intermediaries. This peer-to-peer model not only reduces costs but also empowers users to make conscious choices about their energy sources, promoting the use of renewables such as solar, wind, and hydro power.
Central to SunContract’s ecosystem is its native digital asset, the SNC token. This Ethereum-based token serves as the primary medium of exchange on the platform, enabling seamless transactions and ensuring transparency through blockchain’s immutable ledger. By utilizing SNC tokens, users can engage in energy trading with confidence, knowing that each transaction is securely recorded and verifiable.
Expanding on its innovative approach, SunContract has introduced a groundbreaking feature: the tokenization of real-world solar panels through non-fungible tokens (NFTs). Each NFT represents ownership of a specific solar panel, allowing individuals to invest in renewable energy infrastructure without the need for physical installation. Owners of these NFTs receive a share of the revenue generated by their panels, effectively turning clean energy production into a decentralized investment opportunity.
This integration of blockchain, DeFi, and renewable energy exemplifies how technology can be harnessed to create more sustainable and participatory energy systems. By providing tools for direct engagement and investment, platforms like SunContract are not only facilitating the transition to green energy but also reshaping the way individuals interact with and benefit from the energy sector.