An Explainable Equity-Aware P2P Energy Trading Framework for Socio-Economically Diverse Microgrid

Fuente: arXiv
Enregistré dans:
Détails bibliographiques
Auteurs principaux: Theja, Abhijan, Pal, Mayukha
Format: Preprint
Publié: 2025
Sujets:
Accès en ligne:
Tags: Ajouter un tag
Pas de tags, Soyez le premier à ajouter un tag!
_version_ 1866913959200686080
author Theja, Abhijan
Pal, Mayukha
author_facet Theja, Abhijan
Pal, Mayukha
contents Fair and dynamic energy allocation in community microgrids remains a critical challenge, particularly when serving socio-economically diverse participants. Static optimization and cost-sharing methods often fail to adapt to evolving inequities, leading to participant dissatisfaction and unsustainable cooperation. This paper proposes a novel framework that integrates multi-objective mixed-integer linear programming (MILP), cooperative game theory, and a dynamic equity-adjustment mechanism driven by reinforcement learning (RL). At its core, the framework utilizes a bi-level optimization model grounded in Equity-regarding Welfare Maximization (EqWM) principles, which incorporate Rawlsian fairness to prioritize the welfare of the least advantaged participants. We introduce a Proximal Policy Optimization (PPO) agent that dynamically adjusts socio-economic weights in the optimization objective based on observed inequities in cost and renewable energy access. This RL-powered feedback loop enables the system to learn and adapt, continuously striving for a more equitable state. To ensure transparency, Explainable AI (XAI) is used to interpret the benefit allocations derived from a weighted Shapley value. Validated across six realistic scenarios, the framework demonstrates peak demand reductions of up to 72.6%, and significant cooperative gains. The adaptive RL mechanism further reduces the Gini coefficient over time, showcasing a pathway to truly sustainable and fair energy communities.
format Preprint
id arxiv_https___arxiv_org_abs_2507_18738
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle An Explainable Equity-Aware P2P Energy Trading Framework for Socio-Economically Diverse Microgrid
Theja, Abhijan
Pal, Mayukha
Systems and Control
Computer Science and Game Theory
Machine Learning
Fair and dynamic energy allocation in community microgrids remains a critical challenge, particularly when serving socio-economically diverse participants. Static optimization and cost-sharing methods often fail to adapt to evolving inequities, leading to participant dissatisfaction and unsustainable cooperation. This paper proposes a novel framework that integrates multi-objective mixed-integer linear programming (MILP), cooperative game theory, and a dynamic equity-adjustment mechanism driven by reinforcement learning (RL). At its core, the framework utilizes a bi-level optimization model grounded in Equity-regarding Welfare Maximization (EqWM) principles, which incorporate Rawlsian fairness to prioritize the welfare of the least advantaged participants. We introduce a Proximal Policy Optimization (PPO) agent that dynamically adjusts socio-economic weights in the optimization objective based on observed inequities in cost and renewable energy access. This RL-powered feedback loop enables the system to learn and adapt, continuously striving for a more equitable state. To ensure transparency, Explainable AI (XAI) is used to interpret the benefit allocations derived from a weighted Shapley value. Validated across six realistic scenarios, the framework demonstrates peak demand reductions of up to 72.6%, and significant cooperative gains. The adaptive RL mechanism further reduces the Gini coefficient over time, showcasing a pathway to truly sustainable and fair energy communities.
title An Explainable Equity-Aware P2P Energy Trading Framework for Socio-Economically Diverse Microgrid
topic Systems and Control
Computer Science and Game Theory
Machine Learning
url https://arxiv.org/abs/2507.18738