Smart grid modernizations have led to the development of remunerative programs that encourage consumers to optimize their energy consumption in response to penalties, pricing signals, or curtailment requests. The potential flexibility being infused by the programs have rendered consumer’s energy load and onsite generation capabilities to be considered as a critical factors and resource for grid balancing. Smart grids have infused a paradigm shift toward active energy distribution and have significantly transformed the role of a consumer alongside communities, enabling “passive” users to act as “active” participants – both as consumers and producers.

The smartest and viable part of the grid, however, is not the technological integration, but rather the human tendencies: the “prosumer” or “prosumerism.” A prosumer is a consecutive power producer and consumer. Consumers transform into potential prosumers through the integration of an energy generation unit including a solar panel within their premises. Increasing number of institutions, households, and businesses setting up renewable energy systems has led to the structuring of a socio-technical distribution system.