The rise of the prosumer—an individual who both produces and consumes resources—has become a defining characteristic of today’s energy landscape. With the increasing availability of renewable energy technologies, prosumers are contributing significantly to decentralized power grids by generating their own energy, often using solar panels or wind turbines, and even selling surplus energy back to the grid.

This shift not only challenges traditional energy models but also presents a range of new opportunities and obstacles.

In addition to energy, the prosumer model extends into other areas such as agriculture, where people cultivate their own food through urban gardening or small-scale farming. Together, these efforts represent a broader movement towards sustainability, self-sufficiency, and reduced environmental impact.

The term “prosumer” was first coined by futurist Alvin Toffler in his 1980 book The Third Wave. Originally, it referred to individuals who produce content or products for their own consumption, which blurs the line between producer and consumer. In today’s context, the term is most often applied to the energy sector, where individuals and businesses both consume and generate electricity.

 This shift is largely driven by the increasing affordability of technologies like solar photovoltaics (PV), energy storage systems, and the growing interest in environmental sustainability.

Prosumers are not limited to individual households; entire communities, cooperatives, and businesses can operate within this model, often generating more power than they need and selling the excess back to utility companies, thereby contributing to the broader energy grid.

One notable case study is from Athens, where the Hyperion Energy Community has set up a collective of prosumers who generate electricity through shared ownership of solar PV plants. The key aspect of this initiative is virtual net metering, which allows members of the energy community to receive credits for the power produced by solar arrays located far from their homes.

This collective production system enables urban residents, who lack sufficient rooftop space, to participate in renewable energy generation. The system has been lauded for reducing electricity costs for participants while also contributing to national energy goals.

An article in the European Environment Agency’s home page, describes how prosumers in Barcelona, are using rooftop solar installations and small wind turbines to contribute to the city’s energy grid. The city’s efforts are part of a larger movement to decentralize energy production and increase the use of renewables. As the local government supports these initiatives through regulatory changes and financial incentives, more businesses and households are transitioning into energy producers

Outside of energy, the prosumer model extends into agriculture through urban gardening and community farming. Cities like Detroit and New York have seen a surge in urban farming initiatives where residents grow their own vegetables and fruits, often in previously unused spaces like rooftops or vacant lots. These small-scale agricultural efforts allow people to supplement their diets with homegrown food, reduce reliance on industrial agriculture, and enhance community resilience. Urban gardening, like energy prosumption, often involves sharing resources, such as water and land, within a community.

The rise of the prosumer has been facilitated by advancements in technology, particularly the development of smart grids, Internet of Things (IoT) devices, and AI-based tools. Smart grids enable a two-way flow of electricity and information between producers and consumers, allowing for better coordination and optimization of energy distribution.

Prosumers benefit from real-time data on energy consumption, storage, and production, making it easier to manage their energy output and consumption.

Artificial intelligence plays a crucial role in stabilizing and enhancing these smart grids. AI-driven systems can analyze vast amounts of data, predict fluctuations in energy demand and supply, and even reroute energy when necessary. For instance, predictive analytics allow utility companies to balance intermittent energy sources like wind and solar, which are common among prosumers. By identifying energy surpluses or deficits in real-time, AI systems can reroute energy to where it is most needed, ensuring stability across the grid.

Despite the benefits of becoming a prosumer, there are significant challenges to widespread adoption. One of the primary obstacles is regulatory. Many energy grids and utility companies are still structured around a centralized production model, where energy flows in one direction—from large power plants to consumers. Integrating decentralized energy production, especially from small-scale prosumers, requires significant changes in grid management and regulatory frameworks.

Additionally, financing the initial costs of renewable energy technologies, such as solar panels or battery storage systems, remains a barrier for many potential prosumers. While the long-term savings are substantial, the upfront investment can be prohibitive, particularly for low-income households.

In the agricultural domain, urban gardening faces challenges in terms of land access, soil quality, and water availability. Many urban areas are densely populated, leaving little space for gardens. Furthermore, gardening requires knowledge and resources that not all potential prosumers possess. This is why community-based models, which share knowledge and resources, are essential for urban agriculture to succeed.

Despite the challenges, the prosumer model is gaining traction as governments and utility companies recognize its potential to support sustainability goals. In some regions, regulatory changes have made it easier for prosumers to connect to the grid and receive fair compensation for their contributions. For instance, in Athens, the implementation of virtual net metering has been a game-changer for urban residents who wish to produce renewable energy but lack the physical space for installations(

In agricultural contexts, initiatives like community-supported agriculture (CSA) and urban farming cooperatives are helping to make food prosumption more accessible. By sharing resources and distributing risks, these models allow more people to participate in sustainable food production.

The rise of the prosumer signals a shift in how we think about consumption and production, especially in the fields of energy and food. While challenges remain, such as regulatory barriers and the high initial costs of renewable technologies, successful use cases in cities like Athens and Barcelona demonstrate the potential of the prosumer model to contribute to sustainability goals. As technology advances and regulatory frameworks evolve, the prosumer movement is likely to expand, creating more resilient, decentralized systems for both energy and food production.