Modeling Smart Grid adoption via a social network model

Smart Grid Technologies are poised to radically transform the way energy is used. Analyses of the workings of smart grid and its effects have been investigated in numerous existing works. Adoption of smart grid, however, has not been. Modeling this adoption poses problems not found in other work on technology adoption, since the behaviors of individual users can affect other users in complex ways. This contrasts with earlier work, where effects between users tend to be strictly positive or strictly negative. In this paper, we introduce a model of smart grid adoption based on social networks. Our model is highly modular and therefore is well-suited to study the effects of each component. We find that for widespread adoption of smart grid demand response technology, utility companies should educate the populace about smart grid, make sure they are releasing it into connected communities, and should not sell non-smart-grid electricity too cheaply.