Fairness-First AI in Demand Response: Bridging Equity and Efficiency in Smart Energy Systems

Emile, Renu, Koul, Saroj, Tatia, Anushka and Sahgal, Anna (2026) Fairness-First AI in Demand Response: Bridging Equity and Efficiency in Smart Energy Systems. In: 2026 International Conference on Intelligent and Innovative Technologies in Computing, Electrical and Electronics (IITCEE), 22-23 Jan 2026, Bangalore, India.

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Abstract

Demand response (DR) is central to innovative grid efforts, yet traditional models often neglect social equity. We present a Fairness-First DR algorithm that embeds energy justice principles, digital inclusion, and algorithmic accountability into load-shifting strategies. Using Jaipur, India, as a case study, we propose a conceptual model that balances utility goals, such as peak reduction, with justice-oriented aims, including affordability, participation, and recognition. Our framework expands conventional energy models by integrating equitable DR access regardless of device ownership or internet access. We synthesise demand data under a cost-minimising baseline and our Fairness-First controller. Results show significantly improved equity, as low-income households capture a greater share of bill savings, and the Jain fairness index rises from 0.65 to 0.92, with minimal loss in peak reduction. Informal dialogue with Jaipur stakeholders - policymakers, utility engineers, and residents - reveals strong concern about fair benefit-sharing. Residents frequently worry that DR programs may favour those with smart appliances, excluding poorer households. We outline a realistic implementation pathway through Indian institutions, including the Ministry of New and Renewable Energy (MNRE), the Energy and Resources Institute (TERI), the Self-Employed Women's Association (SEWA), and state governments. Proposed solutions address key barriers to peak reduction, including digital literacy, data gaps, and trust, by providing training and promoting transparent data sharing. By placing justice at the heart of DR, this study contributes actionable insights for more equitable energy transitions.

Item Type: Conference or Workshop Item (Paper)
Keywords: Artificial intelligence | Demand response | energy justice | fairness | Load modeling | Optimization | Reliability | Renewable energy | SDG7 | Smart grids | Stakeholders | Technological innovation | Training
Subjects: Social Sciences and humanities > Business, Management and Accounting > Management Information Systems
Social Sciences and humanities > Business, Management and Accounting > Management of Technology and Innovation
Physical, Life and Health Sciences > Computer Science
JGU School/Centre: Jindal Global Business School
Jindal Global Law School
Depositing User: Mr. Arjun Dinesh
Date Deposited: 26 Feb 2026 04:57
Last Modified: 26 Feb 2026 04:57
Official URL: https://doi.org/10.1109/IITCEE67948.2026.11394258
URI: https://pure.jgu.edu.in/id/eprint/10953

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