Prosumer Experience as a Practice

In the rapidly evolving landscape of energy, prosumers—consumers who also produce energy—are emerging as pivotal players in our journey towards decarbonization and a sustainable future. These individuals and businesses, participating in demand response (DR) programs, equipped with distributed energy resources (DERs) such as solar panels, energy storage systems, smart devices, and grid-integrated appliances, are not just consuming electricity but actively participating in power generation and grid management. The role of prosumers will extend beyond mere energy production to include other grid services such as capacity and quick load balancing solutions, forming a critical component of our energy transition strategy.

As utilities grapple with this shift, many have turned to Customer Experience (CX) and User Experience (UX) practices in hopes of improving the DR and DER offerings and customer programs aimed at the prosumers-to-be. This approach is smart because customer-centric thinking is key to determining how to approach customers. However, it falls short of addressing the unique position prosumers occupy in our evolving energy ecosystem. Traditional CX/UX frameworks, designed primarily for one-way customer interactions, need to be adapted to accommodate the complexities of the prosumer-grid relationship.

A Prosumer is a Supplier (The Prosumer Paradox)

Here's the crux of the matter: prosumers are no longer just consumers; they're suppliers. They provide network products to balance the grid, not only including energy but also capacity grid products like frequency regulation, spinning and non-spinning reserves, as well as local flexibilities (non-wire alternatives). This dual role challenges the traditional CX/UX analytical framework, which was designed primarily for one-way customer interactions.

The grid doesn't just need the impact of DR and DER to satisfy customers; it needs these resources to achieve its own goals of grid balancing, reliability, and affordability. This shift fundamentally alters the utility-customer relationship, creating a new dynamic where customer satisfaction must be balanced not only with grid requirements but also market fairness.

The shortfall of applying standard CX/UX practices to prosumers becomes evident when we consider the key economic and policy principles applied to the markets of electricity. Prosumers are consumers who have voluntarily decided to become suppliers to the utility in exchange for a form of reward, and obtaining these rewards comes with responsibilities. What they sell to the utility must be of quality and price competitive.

So, another aspect to consider is the fair treatment of other, traditional suppliers to the utility. Sound economic and policy rules suggest that they are to be treated fairly, and the consequence of not treating them fairly is to see an impact on price, quality, and availability of their grid services. This limits the favorable treatment and benefits one utility should give to prosumers. For example, the price ($/kW-year) paid for capacity provided through commercial DR (the "reward" of participation) should be allowed to float dynamically to maximize grid benefit and prosumer revenue, like it is allowed in most of the word but Canada. While this may not provide an ideal customer experience, it may ultimately generate more value for all stakeholders.

Finally, CX/UX can do little to change the rules of physics and the limitations of today's technologies. For example, prosumers in winter-peaking jurisdictions may want to be paid top-dollar for high solar PV yield during the summer, but this may not align with when supply is most valuable. Currently, no technology options exist for a prosumer to store electric energy in the summer for use in the winter.

It boils down to this: paying more for energy or another grid service or accepting lesser quality grid service from prosumers, while it would temporarily boost uptake of utility programs or of "likable" technologies, could damage the same grid's ability to deliver affordable, reliable energy to all consumers.

Prosumer Experience: The New Frontier in Customer Engagement in the Energy Sector

Our team has evolved "Prosumer Experience" as a distinct practice. This new approach is rooted in traditional CX/UX methodologies but adapted through the lens of energy economics fundamentals, traditional demand-side management expertise, and a deep understanding of energy engineering.

To balance fairness between prosumers and suppliers, our team:

1. Develops transparent pricing mechanisms that reflect the true value of prosumer contributions to the grid.
2. Implements quality standards for prosumer-supplied energy and services.
3. Creates a level playing field where prosumers and traditional suppliers compete on equal terms.

If prosumers are to be favored, we ensure it's justified and temporary—just long enough to lower hurdle, let new solutions enter the market and be ready to compete.

We adapt the fundamental analytical framework of CX/UX for prosumers by:

1. Incorporating grid needs and constraints into the user experience design process.
2. Developing metrics that measure both customer satisfaction and grid contribution.
3. Creating interfaces that educate prosumers about their role in the broader energy ecosystem.
4. Designing feedback mechanisms that help prosumers understand their impact on grid stability and efficiency.

These adaptations to the CX/UX framework are informed by the principles of user-centered design, but with a broader perspective that includes the needs of the grid and other market participants. For instance, our empathy mapping process in design thinking is expanded to include not just the prosumer's needs and pain points, but also those of the grid operators and economic regulators.

Only by embracing this holistic view have we put CX/UX to good use to achieve ambitious goals for decarbonization, renewable energy integration, DR penetration, and DER integration.

A Case Study: Flexible Load Management

Consider flexible load management (FLM), a key trend in demand response. FLM is a form of demand response that involves scheduling more frequent, yet shorter and milder demand response events throughout the year. DERMS providers like, for instance Virtual Peaker, are increasing offering their own FLM solutions developed based on AI. FLM is a "soft-touch" approach to demand response that has gained significant popularity, and for good reason. The promise of FLM is to lead to wider acceptance of demand response by customers.

On the surface, it seems like a win-win: reduce customer inconvenience while still achieving DR goals. Ask any customer, and they'll tell you they don't want the inconvenience of service interruptions due to DR events like thermostat setbacks or hot water interruptions. But here's where prosumer experience diverges from traditional CX/UX thinking: while reducing inconvenience seems universally positive, it comes with trade-offs in impact and value for the utility (the laws of physics and limitations of technology still apply).

FLM aims to provide automated and aggregated real-time changes to grid-edge appliances without significantly impacting customers. However, this approach does not deliver the same level of per-participant or per-device load reduction as traditional DR methods, potentially limiting the effectiveness of FLM in addressing grid challenges.

A lower per-participant impact (in kW worth of curtailment or kWh worth of annual savings) is not a trivial matter. The implementation of FLM faces challenges in developing algorithms and determining the proper way to deliver control signals to grid-edge smart devices. This complexity requires sophisticated software solutions and careful integration with existing enterprise digital infrastructure. Therefore, getting a clear appreciation of the trade-offs is crucial to assess the return on investment. Paradoxically, if not implemented thoughtfully, FLM might undermine the very purpose it was designed to serve: delivering a wealth of grid services.

This is not to say that FLM is irrelevant. FLM has the potential to boost widespread adoption of DR and DER beyond its current footprint. However, embracing flexible load management requires a delicate balance between customer convenience and grid value – a balance that can only be achieved through a comprehensive Prosumer Experience approach.

Beyond CX/UX: Embracing a Prosumer Experience Approach

Ultimately, technology and innovation bring many new promises to make the prosumer experience flourish, and CX/UX serves as a crucial guide for innovation in easing the energy transition. However, off-the-shelf CX/UX approaches fall short. A true prosumer experience requires a nuanced understanding of what it means to be both a supplier and a consumer simultaneously. It demands the integration of market structure knowledge, economic regulation principles, technological and engineering expertise, and a clear vision of what a good prosumer experience aims to achieve.

To achieve this, we have expanded our analytical toolkit beyond traditional CX/UX methods. For instance:

• We extend journey mapping to include not just the customer's journey, but also the energy's journey from prosumer to grid and back.
• In persona development, we consider the prosumer's dual role as both consumer and supplier.
• In usability testing, we evaluate not only the ease of use for the prosumer but also the impact on grid stability and the need for market fairness.
• The Key Performance Indicators (KPIs) we recommend are expanded to include metrics related to grid contribution and overall system efficiency.

By integrating these considerations into our CX/UX practices, we create a prosumer experience that truly serves all stakeholders in the energy ecosystem.

It's time to go beyond CX/UX and embrace the prosumer experience. Only by doing so can utilities truly prepare for the energy transition. Utility readiness for the energy transition does not only mean increasing participation in DR, DER, and other demand-side management offerings. It also means ensuring that those consumers who decide to participate in these offerings truly bring net value to the electricity grid and to all who depend on it.

Are you ready to rethink your approach to prosumer engagement? Let's start a conversation about how we can leverage the Prosumer Experience to increase your readiness for the energy transition.

About the Author

I am a management consultant specializing in the energy transition. With a focus on digital transformation, I work to help utilities unlock the full potential of demand-side management and distributed energy resource, and drive sustainable energy solutions. Connect with me on LinkedIn.