Scalable Fairness Shaping with LLM-Guided Multi-Agent Reinforcement Learning for Peer-to-Peer Electricity Markets

Fuente: arXiv
Enregistré dans:
Détails bibliographiques
Auteurs principaux: Jadhav, Shrenik, Sevak, Birva, Das, Srijita, Hussain, Akhtar, Su, Wencong, Bui, Van-Hai
Format: Preprint
Publié: 2025
Sujets:
Accès en ligne:
Tags: Ajouter un tag
Pas de tags, Soyez le premier à ajouter un tag!
_version_ 1866912554916249600
author Jadhav, Shrenik
Sevak, Birva
Das, Srijita
Hussain, Akhtar
Su, Wencong
Bui, Van-Hai
author_facet Jadhav, Shrenik
Sevak, Birva
Das, Srijita
Hussain, Akhtar
Su, Wencong
Bui, Van-Hai
contents 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.
format Preprint
id arxiv_https___arxiv_org_abs_2508_18610
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle 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
Systems and Control
Machine Learning
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.
title Scalable Fairness Shaping with LLM-Guided Multi-Agent Reinforcement Learning for Peer-to-Peer Electricity Markets
topic Systems and Control
Machine Learning
url https://arxiv.org/abs/2508.18610