An interdisciplinary exploration of responsible algorithm design in the era of distributed energy resources

Abstract While the governance of algorithms is of growing societal concern, the energy sector has been slow to engage with this issue. We argue that there are at least three systemic concerns to the design and operation of algorithms in the new, digital energy era. Namely, reliance on algorithms can bias considerations towards the easily quantifiable, that they can inhibit explainability, transparency and trust, and that they could undermine energy users’ autonomy and control. We examine these tensions through an interdisciplinary study that reveals the diversity and materiality of algorithms. Our study focuses on neighbourhood-scale batteries (NSBs) in Australia as a case study of new energy algorithms. We conducted qualitative research with energy sector professionals and citizens to understand the range of perceived benefits and risks of NSBs and the algorithms that drive their behaviour. Issues raised by stakeholders were integrated into our development of multiple NSB optimisation algorithms, whose impacts on NSB owners and customers we quantified through techno-economic modelling. Our results show the allocation of benefits and risks vary considerably between different algorithm designs. This insight a need to improve energy algorithm governance, enabling accountability and responsiveness across the design and use of algorithms so that the digitisation of energy technology does not lead to adverse public outcomes. Taken together, our study underscores the importance for researchers and developers of new algorithms to take a holistic view of stakeholders and public benefit, and demonstrates one method to practice responsible algorithm design.