Behavioral Generative Agents for Energy Operations

TL;DR

This paper explores how generative AI agents can simulate diverse customer behaviors in energy operations, helping to understand decision-making under uncertainty and rare events, and supporting energy system design and policy analysis.

Contribution

It introduces a novel use of large language model-based generative agents to simulate customer decision-making in energy markets, capturing heterogeneity and rare event behaviors.

Findings

Agents behave more rationally in simple scenarios.

Agents exhibit heterogeneous preferences and reasoning patterns.

Agents prioritize reliability over cost in blackout scenarios.

Abstract

Problem definition: Accurately modeling consumer behavior in energy operations is challenging due to uncertainty, behavioral heterogeneity, and limited empirical data-particularly in low-frequency, high-impact events. While generative AI trained on large-scale human data offers new opportunities to study decision behavior, its role in operational applications remains unclear. We examine how generative agents can support customer behavior discovery in energy operations, complementing rather than replacing human-based experiments. Methodology/results: We introduce a novel approach leveraging generative agents-artificial agents powered by large language models-to simulate sequential customer decisions under dynamic electricity prices and outage risks. We find that these agents behave more optimally and rationally in simpler market scenarios, while their performance becomes more variable and suboptimal as task complexity rises. Furthermore, the agents exhibit heterogeneous customer preferences, consistently maintaining distinct, persona-driven reasoning patterns in both operational decisions and textual reasoning. Comparisons with dynamic programming and greedy policy benchmarks show alignment between specific personas and distinct heuristic decision policies. In low-frequency, high-impact events such as blackouts, agents prioritize energy reliability over cost or profit, demonstrating their ability to uncover behavioral patterns beyond the rigidity of traditional mathematical models. Managerial Implications: Our findings suggest that behavioral generative agents can serve as scalable and flexible tools for studying consumer behavior in energy operations. By enabling controlled experiments across heterogeneous customer types and rare events, these agents can enhance the design of energy management systems and support more informed analysis of energy policies and incentive programs.