energy trading
Optimizing Day-Ahead Energy Trading with Proximal Policy Optimization and Blockchain
The increasing penetration of renewable energy sources in day-ahead energy markets introduces challenges in balancing supply and demand, ensuring grid resilience, and maintaining trust in decentralized trading systems. This paper proposes a novel framework that integrates the Proximal Policy Optimization (PPO) algorithm, a state-of-the-art reinforcement learning method, with blockchain technology to optimize automated trading strategies for prosumers in day-ahead energy markets. We introduce a comprehensive framework that employs a Reinforcement Learning (RL) agent for multi-objective energy optimization and blockchain for tamper-proof data and transaction management. Simulations using real-world data from the Electricity Reliability Council of Texas (ERCOT) demonstrate the effectiveness of our approach. The RL agent achieves demand-supply balancing within 2% of the demand and maintains near-optimal supply costs for the majority of the operating hours. Moreover, it generates robust battery storage policies capable of handling variability in solar and wind generation. All decisions are recorded on an Algorand-based blockchain, ensuring transparency, au-ditability, and security - key enablers for trustworthy multi-agent energy trading. Our key contributions are a novel system architecture, the use of curriculum learning to train the RL agent, and policy insights that support real-world deployment.
Peer-to-Peer Energy Trading in Dairy Farms using Multi-Agent Reinforcement Learning
Shah, Mian Ibad Ali, Victorio, Marcos Eduardo Cruz, Duffy, Maeve, Barrett, Enda, Mason, Karl
The integration of renewable energy resources in rural areas, such as dairy farming communities, enables decentralized energy management through Peer-to-Peer (P2P) energy trading. This research highlights the role of P2P trading in efficient energy distribution and its synergy with advanced optimization techniques. While traditional rule-based methods perform well under stable conditions, they struggle in dynamic environments. To address this, Multi-Agent Reinforcement Learning (MARL), specifically Proximal Policy Optimization (PPO) and Deep Q-Networks (DQN), is combined with community/distributed P2P trading mechanisms. By incorporating auction-based market clearing, a price advisor agent, and load and battery management, the approach achieves significant improvements. Results show that, compared to baseline models, DQN reduces electricity costs by 14.2% in Ireland and 5.16% in Finland, while increasing electricity revenue by 7.24% and 12.73%, respectively. PPO achieves the lowest peak hour demand, reducing it by 55.5% in Ireland, while DQN reduces peak hour demand by 50.0% in Ireland and 27.02% in Finland. These improvements are attributed to both MARL algorithms and P2P energy trading, which together results in electricity cost and peak hour demand reduction, and increase electricity selling revenue. This study highlights the complementary strengths of DQN, PPO, and P2P trading in achieving efficient, adaptable, and sustainable energy management in rural communities.
- Energy > Renewable > Solar (1.00)
- Energy > Power Industry (1.00)
- Banking & Finance > Trading (1.00)
- Information Technology > Artificial Intelligence > Representation & Reasoning > Agents (1.00)
- Information Technology > Artificial Intelligence > Machine Learning > Reinforcement Learning (1.00)
- Information Technology > Artificial Intelligence > Machine Learning > Neural Networks > Deep Learning (0.46)
Proof of AutoML: SDN based Secure Energy Trading with Blockchain in Disaster Case
Toprak, Salih, Erel-Ozcevik, Muge
In disaster scenarios where conventional energy infrastructure is compromised, secure and traceable energy trading between solar-powered households and mobile charging units becomes a necessity. To ensure the integrity of such transactions over a blockchain network, robust and unpredictable nonce generation is vital. This study proposes an SDN-enabled architecture where machine learning regressors are leveraged not for their accuracy, but for their potential to generate randomized values suitable as nonce candidates. Therefore, it is newly called Proof of AutoML. Here, SDN allows flexible control over data flows and energy routing policies even in fragmented or degraded networks, ensuring adaptive response during emergencies. Using a 9000-sample dataset, we evaluate five AutoML-selected regression models - Gradient Boosting, LightGBM, Random Forest, Extra Trees, and K-Nearest Neighbors - not by their prediction accuracy, but by their ability to produce diverse and non-deterministic outputs across shuffled data inputs. Randomness analysis reveals that Random Forest and Extra Trees regressors exhibit complete dependency on randomness, whereas Gradient Boosting, K-Nearest Neighbors and LightGBM show strong but slightly lower randomness scores (97.6%, 98.8% and 99.9%, respectively). These findings highlight that certain machine learning models, particularly tree-based ensembles, may serve as effective and lightweight nonce generators within blockchain-secured, SDN-based energy trading infrastructures resilient to disaster conditions.
- Energy > Renewable (1.00)
- Banking & Finance > Trading (1.00)
- Information Technology > Security & Privacy (0.96)
- (2 more...)
Scalable Fairness Shaping with LLM-Guided Multi-Agent Reinforcement Learning for Peer-to-Peer Electricity Markets
Jadhav, Shrenik, Sevak, Birva, Das, Srijita, Hussain, Akhtar, Su, Wencong, Bui, Van-Hai
Peer-to-peer (P2P) energy trading is becoming central to modern distribution systems as rooftop PV and home energy management systems become pervasive, yet most existing market and reinforcement learning designs emphasize efficiency or private profit and offer little real-time guidance to ensure equitable outcomes under uncertainty. To address this gap, a fairness-aware multiagent reinforcement learning framework, FairMarket-RL, is proposed in which a large language model (LLM) critic shapes bidding policies within a continuous double auction under partial observability and discrete price-quantity actions. After each trading slot, the LLM returns normalized fairness scores Fairness-to-Grid (FTG), Fairness-Between-Sellers (FBS), and Fairness-of-Pricing (FPP) that are integrated into the reward via ramped coefficients and tunable scaling, so that fairness guidance complements, rather than overwhelms, economic incentives. The environment models realistic residential load and PV profiles and enforce hard constraints on prices, physical feasibility, and policy-update stability. Across a progression of experiments from a small pilot to a larger simulated community and a mixed-asset real-world dataset, the framework shifts exchanges toward local P2P trades, lowers consumer costs relative to grid-only procurement, sustains strong fairness across participants, and preserves utility viability. Sensitivity analyses over solar availability and aggregate demand further indicate robust performance, suggesting a scalable, LLM-guided pathway to decentralized electricity markets that are economically efficient, socially equitable, and technically sound.
- Research Report (1.00)
- Overview (0.68)
VAE-GAN Based Price Manipulation in Coordinated Local Energy Markets
Mukherjee, Biswarup, Zhou, Li, Krishnan, S. Gokul, Kabirifar, Milad, Lakshminarayana, Subhash, Konstantinou, Charalambos
This paper introduces a model for coordinating prosumers with heterogeneous distributed energy resources (DERs), participating in the local energy market (LEM) that interacts with the market-clearing entity. The proposed LEM scheme utilizes a data-driven, model-free reinforcement learning approach based on the multi-agent deep deterministic policy gradient (MADDPG) framework, enabling prosumers to make real-time decisions on whether to buy, sell, or refrain from any action while facilitating efficient coordination for optimal energy trading in a dynamic market. In addition, we investigate a price manipulation strategy using a variational auto encoder-generative adversarial network (VAE-GAN) model, which allows utilities to adjust price signals in a way that induces financial losses for the prosumers. Our results show that under adversarial pricing, heterogeneous prosumer groups, particularly those lacking generation capabilities, incur financial losses. The same outcome holds across LEMs of different sizes. As the market size increases, trading stabilizes and fairness improves through emergent cooperation among agents.
- Energy > Power Industry (1.00)
- Energy > Energy Storage (1.00)
- Banking & Finance > Trading (1.00)
- Energy > Renewable (0.94)
Uncertainty-Aware Knowledge Transformers for Peer-to-Peer Energy Trading with Multi-Agent Reinforcement Learning
Shah, Mian Ibad Ali, Barrett, Enda, Mason, Karl
This paper presents a novel framework for Peer-to-Peer (P2P) energy trading that integrates uncertainty-aware prediction with multi-agent reinforcement learning (MARL), addressing a critical gap in current literature. In contrast to previous works relying on deterministic forecasts, the proposed approach employs a heteroscedastic probabilistic transformer-based prediction model called Knowledge Transformer with Uncertainty (KTU) to explicitly quantify prediction uncertainty, which is essential for robust decision-making in the stochastic environment of P2P energy trading. The KTU model leverages domain-specific features and is trained with a custom loss function that ensures reliable probabilistic forecasts and confidence intervals for each prediction. Integrating these uncertainty-aware forecasts into the MARL framework enables agents to optimize trading strategies with a clear understanding of risk and variability. Experimental results show that the uncertainty-aware Deep Q-Network (DQN) reduces energy purchase costs by up to 5.7% without P2P trading and 3.2% with P2P trading, while increasing electricity sales revenue by 6.4% and 44.7%, respectively. Additionally, peak hour grid demand is reduced by 38.8% without P2P and 45.6% with P2P . These improvements are even more pronounced when P2P trading is enabled, highlighting the synergy between advanced forecasting and market mechanisms for resilient, economically efficient energy communities.
- Energy (1.00)
- Banking & Finance > Trading (1.00)
- Information Technology > Artificial Intelligence > Representation & Reasoning > Agents (1.00)
- Information Technology > Artificial Intelligence > Machine Learning > Reinforcement Learning (1.00)
- Information Technology > Artificial Intelligence > Machine Learning > Neural Networks > Deep Learning (0.88)
FairMarket-RL: LLM-Guided Fairness Shaping for Multi-Agent Reinforcement Learning in Peer-to-Peer Markets
Jadhav, Shrenik, Sevak, Birva, Das, Srijita, Hussain, Akhtar, Su, Wencong, Bui, Van-Hai
Peer-to-peer (P2P) trading is increasingly recognized as a key mechanism for decentralized market regulation, yet existing approaches often lack robust frameworks to ensure fairness. This paper presents FairMarket-RL, a novel hybrid framework that combines Large Language Models (LLMs) with Reinforcement Learning (RL) to enable fairness-aware trading agents. In a simulated P2P microgrid with multiple sellers and buyers, the LLM acts as a real-time fairness critic, evaluating each trading episode using two metrics: Fairness-To-Buyer (FTB) and Fairness-Between-Sellers (FBS). These fairness scores are integrated into agent rewards through scheduled λ-coefficients, forming an adaptive LLM-guided reward shaping loop that replaces brittle, rule-based fairness constraints. Agents are trained using Independent Proximal Policy Optimization (IPPO) and achieve equitable outcomes, fulfilling over 90% of buyer demand, maintaining fair seller margins, and consistently reaching FTB and FBS scores above 0.80. The training process demonstrates that fairness feedback improves convergence, reduces buyer shortfalls, and narrows profit disparities between sellers. With its language-based critic, the framework scales naturally, and its extension to a large power distribution system with household prosumers illustrates its practical applicability. FairMarket-RL thus offers a scalable, equity-driven solution for autonomous trading in decentralized energy systems.
- North America > United States > Michigan > Wayne County > Dearborn (0.05)
- North America > United States > Georgia > Fulton County > Atlanta (0.04)
- North America > Canada (0.04)
- (2 more...)
- Energy > Power Industry (1.00)
- Banking & Finance (1.00)
Evolutionary model for energy trading in community microgrids using Hawk-Dove strategies
Chifu, Viorica Rozina, Cioara, Tudor, Pop, Cristina Bianca, Anghel, Ionut
This paper proposes a decentralized model of energy cooperation between microgrids, in which decisions are made locally, at the level of the microgrid community. Each microgrid is modeled as an autonomous agent that adopts a Hawk or Dove strategy, depending on the level of energy stored in the battery and its role in the energy trading process. The interactions between selling and buying microgrids are modeled through an evolutionary algorithm. An individual in the algorithm population is represented as an energy trading matrix that encodes the amounts of energy traded between the selling and buying microgrids. The population evolution is achieved by recombination and mutation operators. Recombination uses a specialized operator for matrix structures, and mutation is applied to the matrix elements according to a Gaussian distribution. The evaluation of an individual is made with a multi-criteria fitness function that considers the seller profit, the degree of energy stability at the community level, penalties for energy imbalance at the community level and for the degradation of microgrids batteries. The method was tested on a simulated scenario with 100 microgrids, each with its own selling and buying thresholds, to reflect a realistic environment with variable storage characteristics of microgrids batteries. By applying the algorithm on this scenario, 95 out of the 100 microgrids reached a stable energy state. This result confirms the effectiveness of the proposed model in achieving energy balance both at the individual level, for each microgrid, and at the level of the entire community.
Evaluation of Prosumer Networks for Peak Load Management in Iran: A Distributed Contextual Stochastic Optimization Approach
Noori, Amir, Tavassoli, Babak, Fereidunian, Alireza
Renewable prosumers face the complex challenge of balancing self-sufficiency with seamless grid and market integration. This paper introduces a novel prosumers network framework aimed at mitigating peak loads in Iran, particularly under the uncertainties inherent in renewable energy generation and demand. A cost-oriented integrated prediction and optimization approach is proposed, empowering prosumers to make informed decisions within a distributed contextual stochastic optimization (DCSO) framework. The problem is formulated as a bi-level two-stage multi-time scale optimization to determine optimal operation and interaction strategies under various scenarios, considering flexible resources. To facilitate grid integration, a novel consensus-based contextual information sharing mechanism is proposed. This approach enables coordinated collective behaviors and leverages contextual data more effectively. The overall problem is recast as a mixed-integer linear program (MILP) by incorporating optimality conditions and linearizing complementarity constraints. Additionally, a distributed algorithm using the consensus alternating direction method of multipliers (ADMM) is presented for computational tractability and privacy preservation. Numerical results highlights that integrating prediction with optimization and implementing a contextual information-sharing network among prosumers significantly reduces peak loads as well as total costs.
- Asia > Middle East > Iran > Tehran Province > Tehran (0.05)
- North America > United States > California > Los Angeles County > Los Angeles (0.04)
- North America > United States > Massachusetts (0.04)
- (2 more...)
- Energy > Renewable (1.00)
- Energy > Power Industry (1.00)
- Banking & Finance > Trading (1.00)
Reinforcement Learning Enabled Peer-to-Peer Energy Trading for Dairy Farms
Shah, Mian Ibad Ali, Barrett, Enda, Mason, Karl
Farm businesses are increasingly adopting renewables to enhance energy efficiency and reduce reliance on fossil fuels and the grid. This shift aims to decrease dairy farms' dependence on traditional electricity grids by enabling the sale of surplus renewable energy in Peer-to-Peer markets. However, the dynamic nature of farm communities poses challenges, requiring specialized algorithms for P2P energy trading. To address this, the Multi-Agent Peer-to-Peer Dairy Farm Energy Simulator (MAPDES) has been developed, providing a platform to experiment with Reinforcement Learning techniques. The simulations demonstrate significant cost savings, including a 43% reduction in electricity expenses, a 42% decrease in peak demand, and a 1.91% increase in energy sales compared to baseline scenarios lacking peer-to-peer energy trading or renewable energy sources.