An Agent-Based Simulation of Smart Metering Technology Adoption

Abstract

Based on the classic behavioural theory the “Theory of Planned Behaviour,” the authors have developed an agent-based model to simulate the diffusion of smart metering technology in the electricity market. The authors simulate the emergent adoption of smart metering technology under different management strategies and economic regulations. Their research results show that in terms of boosting the take-off of smart meters in the UK electricity market, choosing the initial users on a random and geographically dispersed basis and encouraging meter competition between energy suppliers can be two effective strategies. The authors also observe an “S-curve” diffusion of smart metering technology and a “lock-in” effect in the model. The research results provide users with insights as to effective policies and strategies for the roll-out of smart meters in the UK electricity market.