Price response can make the grid robust: an agent-based discussion

There is considerable agreement that a more price responsive system would make for a more robust grid. This raises the issue of how the end-user can be induced to accept a system that relies more heavily on price signals than the current system. From a modeling perspective, how should the software 'agent' representing the consumer of electricity be modeled so that this agent exhibits some price responsiveness in a realistic manner? To address these issues, we construct an agent-based approach that is realistic in the sense that it can transition from the current system behavior to one that is more price responsive. Evidence from programs around the country suggests that there are ways to implement such a program that could add robustness to the grid.