Explainable AI and Multi-Agent Systems for Energy Management in IoT-Edge Environments: A State of the Art Review

This paper reviews Artificial Intelligence techniques for distributed energy management, focusing on integrating machine learning, reinforcement learning, and multi-agent systems within IoT-Edge-Cloud architectures. As energy infrastructures become increasingly decentralized and heterogeneous, AI must operate under strict latency, privacy, and resource constraints while remaining transparent and auditable. The study examines predictive models ranging from statistical time series approaches to machine learning regressors and deep neural architectures, assessing their suitability for embedded deployment and federated learning. Optimization methods—including heuristic strategies, metaheuristics, model predictive control, and reinforcement learning—are analyzed in terms of computational feasibility and real-time responsiveness. Explainability is treated as a fundamental requirement, supported by model-agnostic techniques that enable trust, regulatory compliance, and interpretable coordination in multi-agent environments. The review synthesizes advances in MARL for decentralized control, communication protocols enabling interoperability, and hardware-aware design for low-power edge devices. Benchmarking guidelines and key performance indicators are introduced to evaluate accuracy, latency, robustness, and transparency across distributed deployments. Key challenges remain in stabilizing explanations for RL policies, balancing model complexity with latency budgets, and ensuring scalable, privacy-preserving learning under non-stationary conditions. The paper concludes by outlining a conceptual framework for explainable, distributed energy intelligence and identifying research opportunities to build resilient, transparent smart energy ecosystems.