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Human-Machine Bidding Strategy for Distributed Energy Resources Based on Multiagent Inverse Reinforcement Learning

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

Abstract

In recent years, the rapid growth of distributed energy resources (DERs) and the emergence of local energy markets (LEMs) have dramatically transformed the energy trading landscape, emphasizing the crucial role of DER aggregators in optimizing bidding strategies. Traditional model-based methods for optimizing DER aggregator bidding in LEMs face significant challenges, including information asymmetry, an inability to adapt to changing market dynamics, and issues with computational scalability in real-time decision-making. Recognized as a promising alternative, deep reinforcement learning (DRL) forms the basis of our proposed solution. This article introduces a human-machine (HM) framework that utilizes a multiagent adversarial inverse reinforcement learning (MA-AIRL) approach to address these challenges. The HM framework enables the DER agent to imitate human demonstrations and leverages a HM hybrid experiment to augment insufficient data, effectively tackling the problem of data inadequacy in new market environments. Concurrently, the MA-AIRL algorithm employs inverse reinforcement learning to capture underlying reward functions, risk preferences, and expert knowledge, significantly enhancing the model's adaptability to dynamic market conditions. Additionally, the adversarial learning component allows the DER agent to robustly respond to uncertainties and the strategic maneuvers of rival agents, thereby mitigating information asymmetry. Moreover, this DRL-based approach is designed to ensure rapid responsiveness without compromising scalability in real-time contexts. Through extensive case studies, we have verified that the proposed HM framework and MA-AIRL algorithm offer a more robust, data-efficient, and adaptive approach for optimizing DER aggregator bidding in LEMs.

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Original languageEnglish
Pages (from-to)8463-8474
Number of pages12
JournalIEEE Transactions on Industrial Informatics
Volume21
Issue number11
Online published8 Aug 2025
DOIs
Publication statusPublished - Nov 2025

Funding

This work was supported in part by the JC STEM Lab of Future Energy Systems under Grant 2025-0039, Global STEM Professorship under Grant GSP313, in part by the Startup Grant of City University of Hong Kong (Data Driven Real Time Smart Energy Management System Supporting Energy Transition), in part by the National Natural Science Foundation of China under Grant 72061147004, and Grant 72342001, in part by the Research Project of Department of Science and Technology of Hunan Province under Grant 2025JJ10009, Grant 2025QK1004, and Grant 2024RC9012, in part by the Australian Research Council Research Hub Grant IH180100020, in part by the ARC Training Centre IC200100023, and in part by the ARC linkage project LP200100056 and the ARC DP220103881.

Research Keywords

  • Bidding strategy
  • human-machine (HM)
  • inverse reinforcement learning (IRL)
  • local energy markets

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