Redefining Sustainable Energy Financing: The Disruptive Influence of Decentralised Finance (DeFi)

Abstract

The challenges imposed by the convention financing (high initial outlay, long gestation periods, absence of standard legislation and non-availability of hedge risk tools) have emerged as barriers in the extensive implementation of sustainable energy projects. The advent of blockchain technologies has empowered to discover unconventional financing systems and efficiently tap the opportunities embraced by Decentralised finance (DeFi). This contemporary source of finance is evolving as an assuring protocol, built on a robust ecosystem encompassing disruptive approaches built on blockchain technology. The present book chapter intends to explore the transformative perspective of DeFi in revolutionizing sustainable energy financing. It outlines a model that underscores the association among various challenges impeding DeFi adoption. It bestows a comprehensive model that focuses on adhering to strategic steps for effectual DeFi integration. The outcomes of this study emphasize insights for policymakers to facilitate informed decision-making for promising sustainable energy projects.