Towards an Energy Physical Internet: Open Business Models and Platforms for Electricity Distribution Enabled by IoT, Blockchain, and Conditional Payments

The Physical Internet (PI) has emerged as a systemic paradigm for overcoming inefficiencies and fragmentation in logistics by introducing modular, interoperable, and hyperconnected infrastructures. Building on foundational PI work and European roadmaps (Montreuil; Ballot; ALICE-ETP), this paper extends the PI concept to the energy sector, advancing the notion of an “Energy Physical Internet” (EPI). Here, electricity is conceptualized as modular “energy packets” dynamically routed across interoperable microgrids and distribution hubs, enabling innovative platform-based business models for decentralized energy trading. The proposed EPI architecture relies on three mutually reinforcing pillars. First, IoT-enabled infrastructures provide real-time observability and control of distributed assets. Second, blockchain-based registries ensure tamper-proof traceability of energy provenance, carbon intensity, and transactions, fostering trust and regulatory compliance. Third, cryptocurrency-enabled conditional payments, implemented via Ethereum smart contracts, automate peer-to-peer settlements conditional on real-time balance and renewable performance. Pilot projects such as the Brooklyn Microgrid already illustrate the feasibility of blockchain-governed energy platforms. The model departs from hierarchical utility-driven systems by empowering prosumers, energy communities, and peer-to-peer marketplaces to act as autonomous yet interoperable nodes. Expected benefits can be assessed through KPIs such as transaction-cost reduction, settlement latency, and resilience indices. Moreover, governance touchpoints, including DSO/TSO coordination and rules for energy data spaces, are recognized as essential for scalability. Our contribution is theoretical and hypothesis-driven. We propose research propositions on (i) interoperability standards for modular energy exchange, (ii) AI-assisted routing for balancing energy packets, and (iii) token-based incentives for prosumer engagement. These propositions directly address known challenges in IoT security, blockchain scalability, and governance. We also announce the development of a conceptual framework and architecture diagram to guide empirical research. By positioning energy as a new frontier for the PI, this paper defines an agenda for interdisciplinary research at the intersection of logistics, energy economics, and digital platforms, aligned with EU Green Deal and Horizon Europe objectives.