From end-user to prosumer
From end-user to prosumer: the path for a smart and decarbonized energy system
When we talk about Smart Cities, it is important to focus not only on the technology but also to take society into consideration. The 21st century is characterized by maximizing comfort for humans and leaving most of our basic activities to technology given the electrified system we live in. For instance, 79% of Americans prepare coffee at home [1] just by turning on the coffee machine without thinking where the electricity comes from. People, in general, are only consumers of the energy generated in power plants but what if we can also play not only the end-user role but also become part of the equation?
Firstly, let’s have a look at the actual energy supply chain:
Now, how the end-user could get involved in the electricity grid is the next question. Some defining elements where one and all can gain a benefit from in-situ electricity generation and participate in the energy market are on photovoltaic (PV) installations, home energy storage systems, and Electric Vehicle (EV) charging stations.
When a household decides to install PV panels, the house benefits from an endless, clean, and free source of energy, avoids risks of fossil fuel price fluctuations, and creates a healthier living environment.
When the same household decides to add an energy storage system, the house increases its own autonomy over its energy supply as it is adding the ultimate grid flexibility tool [2].
If the household gets an EV instead, it could also be used as a battery for the household energy needs or either participate in a Vehicle-to-Grid (V2G) scheme to sell demand response services or whenever it is more convenient for the user to sell its electricity. However, it is crucial to have an electric grid with reflected price signals in order for this to be feasible to happen.
The U.S. Department of Energy defines demand response as “an opportunity for consumers to play a significant role in the operation of the electric grid by reducing or shifting their electricity usage during peak periods in response to time-based rates or other forms of financial incentives.”
Vehicle-to-Grid injections could make the end-user react to prices and to understand the grid needs with the support of an interactive map with open access that shows electricity behavior in real-time.
When the end-user drives to a charging station and plugs-in its EV, the station absorbs electricity from the car battery and simply just pushes it back to the grid. And this is when the end-user became a prosumer. Nonetheless, prosumers need to understand and be aware of the energy market rules and commercialization guidelines.
Prosumers strengthen the energy transition to achieve a decentralized power system and will boost the energy revolution by ensuring energy security, decarbonization, and resilience.
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*Author’s own images
[1]: According to a survey conducted by the National Coffee Association (NCA).
[2]: Energy Storage Regulation: Best Practices and Challenges in LAC and Beyond: SESSION I | Best practices and challenges in grid-scale energy storage, Janice Lin, Strategen.
