Decentralized energy investment: Leveraging public-private partnerships and digital financial instruments to overcome grid instability in the U. S
Neeley School of Business, Texas Christian University, USA.
Review Article
World Journal of Advanced Research and Reviews, 2023, 20(03), 2178-2196
Article DOI: 10.30574/wjarr.2023.20.3.2518
Publication history:
Received on 05 November 2023; revised on 16 December 2023; accepted on 18 December 2023
Abstract:
The transition toward a decentralized energy infrastructure in the United States is critical to addressing growing concerns over grid instability, energy security, and sustainability. Traditional centralized grids face increasing vulnerabilities due to aging infrastructure, climate-induced disruptions, and rising electricity demand. Decentralized energy systems, including distributed renewable energy sources, microgrids, and energy storage solutions, offer resilience and flexibility but require substantial investment. Public-private partnerships (PPPs) have emerged as a viable mechanism to bridge financing gaps by leveraging governmental support, private sector expertise, and innovative financing models. Digital financial instruments, such as blockchain-based energy trading platforms, green bonds, and tokenized energy assets, are reshaping investment strategies by enhancing transparency, liquidity, and accessibility in the energy market. The integration of decentralized finance (DeFi) in energy investment enables peer-to-peer transactions, reducing reliance on traditional financial intermediaries and fostering community-driven energy projects. Moreover, regulatory frameworks and policy incentives play a crucial role in incentivizing private sector participation and ensuring the scalability of decentralized energy initiatives. This paper examines how the synergy between PPPs and digital financial instruments can drive investment in decentralized energy projects, addressing grid instability challenges in the U.S. By analyzing case studies of successful implementations, policy recommendations, and emerging trends in energy finance, this study highlights the transformative potential of innovative investment models in accelerating the clean energy transition. The findings underscore the necessity of a collaborative, technology-driven approach to secure a resilient, decentralized energy future.
Keywords:
Decentralized energy investment; Public-private partnerships; Digital financial instruments; Grid instability; Blockchain energy finance; Renewable energy infrastructure
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Copyright © 2023 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0