The problem InternetS of Energy solves

Secure energy data

We could access to meaningful and secured energy consumption and production data with monitoring systems like Open Energy Monitor with embedded installed Ethereum (light) clients to record energy flows on a distributed ledger ("blockchain"). This gives the opportunity to secure and validate data and to access "pseudonymous" consumption and production energy data to facilitate transactions.

Reduce energy losses

Relying on peer-to-peer energy transactions through micro-grid at the local level makes it possible to significantly reduce energy losses in the grid since electricity does not have to cross the country to reach the consumption point.

Create "short circuits"
Locally distributed energy systems that are interconnected one to another make it possible to take full advantage of diffuse local resources (sun, wind, hydro, electro-chemical electricity production - from plants and bacteria...) while strengthening the resilience of the system since what's produced locally is locally consumed.

Open energy governance

Consumers are part of the equation, if not the central and main actor while talking about energy. A distributed system makes it possible to switch from pure consumer to "prosumers", giving a way for people to be involved in energy governance. Not only this helps to tackle on-ground needs but also to make energy a palpable good.

Challenges I ran into

There are mainly 4 problems:

First, energy producers and dispatchers do not know well (usually not at all) the real-time consumption pattern at the micro-level, meaning they do not have meaningful energy consumption information on their clients that would help to real-time optimize the production/consumption balance;
Second, in current systems energy losses are huge (between 7 and 12% of the total production) because of losses in the pipes making the grid;
Third, the current systems do not take the full potential of local resources; those systems are not in place and not consistent with developing countries issues about energy accessibility because not resilient enough;
Last but not least, consumers do not get real interaction with energy, making raising awareness on reducing energy consumption hard. The only relation you've got with your energy provider is, first the bill, second the switch.

They are then 4 big issues levels:

The increasing complexity of the energy system and organization;
The cost of a trusted 3rd party (specifically the one enabling distribution);
The complexity and inconsistency of the regional regulatory contexts;
The consumer side: how to get people involved in energy governance?