Abstract
Blockchain technology is globally recognised for its immutability, decentralisation, and transparency; yet its adoption in South Africa’s (SA) energy sector is still in its early stages. The study investigated how blockchain could improve transparency, efficiency, and sustainability in energy procurement and quality management by examining existing challenges, developing a blockchain prototype, and proposing a blockchain-based framework.
A mixed-methods approach was employed, with a survey of 131 energy professionals across procurement, operations, maintenance, and customer service, and semi-structured interviews with blockchain developers, experts, and energy specialists. A blockchain prototype in Solidity was developed to demonstrate how digital ledgers and smart contracts can improve procurement processes and quality control. Questionnaire reliability and validity were confirmed using Cronbach’s Alpha, Exploratory Factor Analysis (EFA), and the Kaiser-Meyer-Olkin (KMO) test.
Results reveal procurement challenges, manual activities, poor supplier verification, limited traceability, and high fraud risk. Strong relationships were observed between procurement quality, quality management, and system efficiency, while blockchain adoption levels remained low. Statistical and thematic analyses showed that blockchain could improve procurement efficiency, transparency, sustainability, compliance monitoring, transaction traceability, and supplier accountability. The developed prototype confirmed the technical feasibility of smart contracts for automating procurement activities, improving data quality, and enhancing transaction monitoring. Prototype usability testing showed reduced manual activities and improved operational efficiency. The study recommends supportive digital procurement policies, training programs, and the integration of blockchain into energy infrastructure to improve governance, foster digital transformation, and promote sustainable procurement practices.