The role of blockchain adoption in power sector finance

The power industry with its large capital expenditure, complex money movements, and enforcement of stringent regulations is amid a fast-forward digitization journey. In the context of this landscape, blockchain has drawn a lot of interest with its potential to increase financial transparency, operational effectiveness and trust of stakeholders. The current research is an empirical examination of the relationship between blockchain adoption and the health of the financial performance of an organization in the power sector using Trust Theory as a theoretical approach. A questionnaire which comprised structured questions was conducted to 270 professionals working in the industry of generation, distribution, transmission and regulatory organisations in India. To assess the direct and indirect effect of the blockchain adoption on investor outcome and financial performance, the data used were analyzed using partial lease squares structural equation modeling (PLS-SEM). The results prove that blockchain adoption experience extremely positive impacts on the financial efficiency as well as perceived trust which, respectively, have a positive impact on the investor confidence and financial performance. More importantly, the direct relation between blockchain adoption and investor confidence was found to be statistically insignificant, and so the mediational roles of (trust and efficiency) should not be overlooked. The research has practical implications to policymakers, regulators, and energy companies aiming to revolutionize the approaches to financial systems using blockchain. In addition, regulatory uncertainties, their complexity of integration, and magnitude impediments are noted as the most significant adoption obstructions. Future areas of investigation are longitudinal reviews, examinations of hybrid forms of blockchain and cost-benefit analyses of energy sub-sectors.