Adaptive multi-agent reinforcement learning for dynamic pricing and distributed energy management in virtual power plant networks

This paper presents a novel approach to dynamic pricing and distributed energy management in virtual power plant (VPP) networks using multi-agent reinforcement learning (MARL). As the energy landscape evolves towards greater decentralization and renewable integration, traditional optimization methods struggle to address the inherent complexities and uncertainties. Our proposed MARL framework enables adaptive, decentralized decision-making for both the distribution system operator and individual VPPs, optimizing economic efficiency while maintaining grid stability. We formulate the problem as a Markov decision process and develop a custom MARL algorithm that leverages actor-critic architectures and experience replay. Extensive simulations across diverse scenarios demonstrate that our approach consistently outperforms baseline methods, including Stackelberg game models and model predictive control, achieving an 18.73% reduction in costs and a 22.46% increase in VPP profits. The MARL framework shows particular strength in scenarios with high renewable energy penetration, where it improves system performance by 11.95% compared with traditional methods. Furthermore, our approach demonstrates superior adaptability to unexpected events and mis-predictions, highlighting its potential for real-world implementation. © 2024 The Authors