Bridging Psychological Distance in Energy Decisions: A System Dynamics-Based Serious Game for Virtual Power Plant Adoption

Supervisors: Dr Kenan Degirmenci

A virtual power plant (VPP) is a decentralised, cloud-based network of interconnected home solar systems and batteries that function as a unified energy source, balancing supply and demand within the network. By optimising energy distribution, VPPs reduce costs, enhance grid stability, and promote cleaner energy. In Queensland, solar panel adoption has surged, with 49.5% households installing solar systems due to long-term economic and environmental benefits. However, the adoption of storage batteries—the second core component of a VPP—remains low at just 0.9%. This disparity is likely influenced by temporal discounting, a cognitive bias that leads individuals to prioritise immediate savings over long-term benefits, ultimately hampering battery adoption among residential and industrial users.
This research investigates how serious games can mitigate temporal discounting by bridging the psychological distance between immediate and future benefits. Using system dynamics modelling, we designed an interactive simulation embedded within a serious game to visualise the long-term energy and financial advantages of VPP participation. The game allows users to experiment with different energy consumption patterns, solar and battery investment decisions, and grid interactions in a risk-free environment, reducing uncertainty and enhancing perceived value over time. By integrating behavioural insights and reinforcement mechanisms, the game encourages players to shift their decision-making perspective from short-term concerns to long-term sustainability and economic gains.
This research contributes to understanding how game-based interventions influence decision-making in energy adoption by addressing temporal discounting. Future studies could further refine and evaluate the game, incorporating post-game interviews to analyse decision rationales at key moments. Additionally, iterative game development could provide valuable insights for policymakers seeking to enhance energy transition strategies and promote wider VPP adoption.