VAE-GAN Based Price Manipulation in Coordinated Local Energy Markets

• URL: http://arxiv.org/abs/2507.19844v1
• Date: Sat, 26 Jul 2025 07:38:27 GMT
• Title: VAE-GAN Based Price Manipulation in Coordinated Local Energy Markets
• Authors: Biswarup Mukherjee, Li Zhou, S. Gokul Krishnan, Milad Kabirifar, Subhash Lakshminarayana, Charalambos Konstantinou,
• Abstract summary: This paper introduces a model for coordinating prosumers with heterogeneous distributed energy resources (DERs) in a local energy market (LEM)<n>The proposed LEM scheme utilizes a data-driven, model-free reinforcement learning approach based on the multi-agent deep deterministic policy gradient (MADDPG)<n>We investigate a price manipulation strategy using a variational auto encoder-generative adversarial network (VAE-GAN) model, which allows utilities to adjust price signals in a way that induces financial losses for the prosumers.
• Score: 3.498661956610689
• License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
• Abstract: This paper introduces a model for coordinating prosumers with heterogeneous distributed energy resources (DERs), participating in the local energy market (LEM) that interacts with the market-clearing entity. The proposed LEM scheme utilizes a data-driven, model-free reinforcement learning approach based on the multi-agent deep deterministic policy gradient (MADDPG) framework, enabling prosumers to make real-time decisions on whether to buy, sell, or refrain from any action while facilitating efficient coordination for optimal energy trading in a dynamic market. In addition, we investigate a price manipulation strategy using a variational auto encoder-generative adversarial network (VAE-GAN) model, which allows utilities to adjust price signals in a way that induces financial losses for the prosumers. Our results show that under adversarial pricing, heterogeneous prosumer groups, particularly those lacking generation capabilities, incur financial losses. The same outcome holds across LEMs of different sizes. As the market size increases, trading stabilizes and fairness improves through emergent cooperation among agents.

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