Applying responsible algorithm design to neighbourhood-scale batteries in Australia

The digital energy era presents at least three systemic concerns to the design and operation of algorithms: bias of considerations towards the easily quantifiable; inhibition of explainability; and undermining of trust and inclusion, as well as energy users’ autonomy and control. Here we examine these tensions through an interdisciplinary study that reveals the diversity of possible algorithms and their accompanying material effects, focused on neighbourhood-scale batteries (NSBs) in Australia. 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 NSB optimization algorithms whose effects on NSB owners and customers were quantified through techno-economic modelling. Our results show the allocation of benefits and risks vary considerably between different algorithm designs. This indicates a need to improve energy algorithm governance, enabling accountability and responsiveness across the design and use of algorithms so that the digitization of energy technology does not lead to adverse public outcomes. Algorithms are critical to modern energy systems but their design often overlooks the perspective of key stakeholders. Through an interdisciplinary process, Ransan-Cooper et al. design different algorithms to control neighbourhood-scale batteries that highlight variations in allocation of risk and benefit.