Federated User Self-decision Mechanism for Coupled Electricity and Carbon Market considering Differentiated Objectives of Heterogeneous DERs

Zhaobin Wei, Huiming Chen*, Haotang Li, Haoqiang Liu*, Le Zhang, Jichun Liu, Alberto Borghetti, Hong Yan, C. C. Chan

*Corresponding author for this work

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

How to enable personalized objective and privacy protection on the user side while ensuring the model scalability, is quite challenging for the electricity and carbon (E&C) market at the distribution level. This paper proposes a user-side E&C market mechanism capable of accommodating heterogeneous distributed energy resources (DERs), whose personalized objectives are achieved by user-side self-decision and privacy preserving procedures. Specifically, trans active operation models of multiple heterogeneous DERs are constructed, including the rarely unexplored metroway, charging station for aggregated electric vehicles, photo voltaic units, carbon emission units, and load aggregators. To keep in line with carbon emission reality on the user side, direct carbon emission models of sixhigh-carbon enterprises are separately proposed. Further, a personalized federated learning algorithm with stochastic control variable (pFedScv) is proposed to deliver an efficient solution for the E&C market mechanism, which integrates are inforcement learning algorithm called weighted twin-delayed deep deterministic policy gradient actor-critic network. Case studies on a real world dataset show that the proposed E&C market mechanism can achieve a good trade-off between user-side trading costs and overall social welfare. The proposed pFedScv algorithm outperforms traditional federated learning algorithms interms of convergence, stationarity, and computational performance. © 2025 IEEE.
Original languageEnglish
Pages (from-to)3596-3610
JournalIEEE Transactions on Network Science and Engineering
Volume13
Online published11 Nov 2025
DOIs
Publication statusPublished - 2026

Funding

This work was supported by the National Natural Science Foundation of China under Grant 62102226, Hong Kong Innovation and Technology Commission (InnoHK Project CIMDA), and Guangdong Basic and Applied Basic Research Foundation under Grant 2024A1515110070.

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 7 - Affordable and Clean Energy
    SDG 7 Affordable and Clean Energy

Research Keywords

  • Direct carbon emission
  • distributed energy resource
  • electricity market
  • federated learning
  • user side

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