Decision-Focused Learning-Based Optimization for Renewable Imbalance Settlement and Flexible Resource Dispatch

High renewable penetration makes imbalance settlement inseparable from the physical decisions governing reserve procurement and flexibility activation. This paper develops a decision-focused learning-based optimization framework that trains renewable-deviation and flexible-resource deliverability representations through downstream dispatch, reliability, and settlement consequences. The mathematical contribution is a settlement-aware learning objective that couples learned uncertainty, resource-time credible-capacity certification, network-constrained multi-stage dispatch, and counterfactual marginal-contribution allocation while retaining an exact revenue-adequacy identity. The 33-node Zhangjiakou-type regional case uses 15 min intervals and comprises five resource classes: independent storage, data-center flexibility, industrial adjustable load, commercial demand response, and electric-vehicle aggregation. Relative to a fixed-ratio reserve rule, the proposed method lowers the regional balancing cost from 950 to 618 thousand USD (34.9%), achieves 97.8% renewable accommodation, limits the shortage probability to 0.7%, and attains a settlement-fairness index of 0.92. The framework solves a 500-asset instance in 118 s. External validation uses 4027 half-hour observations from the 2025 Elexon/BMRS market, including measured wind and solar output, day-ahead forecasts, load, imbalance prices, and procured-reserve prices. On the 1487-interval December test set, the proposed model reduces the replay cost from 2953.3 to 2598.2 thousand GBP (12.0%), decreases the shortage-interval frequency from 4.64% to 1.28%, and reaches 99.74% renewable accommodation. Comparisons with forecast-then-optimize, Wasserstein distributionally robust optimization, off-policy reinforcement learning, and graph-based behavioral cloning establish that the improvement comes from jointly learning which uncertainty matters for dispatch and which flexible capacity is deliverable.

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Publication Details

Journal
Energies
Published
2026-08-24
DOI
https://doi.org/10.3390/en19173972
Primary Topic
Electric Power System Optimization
Type
article
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0.00
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article

Decision-Focused Learning-Based Optimization for Renewable Imbalance Settlement and Flexible Resource Dispatch

Rui Min, Yu Xin, Shiyu Liu, Haochen Li et al.
Energies
Electric Power System Optimization
article

Decision-Focused Learning-Based Optimization for Renewable Imbalance Settlement and Flexible Resource Dispatch

Rui Min, Yu Xin, Shiyu Liu, Haochen Li, Hong Zhang, Zhongfu Tan, Zhenjiang Shi, Mu Li, Bo Ning
article en

Abstract

High renewable penetration makes imbalance settlement inseparable from the physical decisions governing reserve procurement and flexibility activation. This paper develops a decision-focused learning-based optimization framework that trains renewable-deviation and flexible-resource deliverability representations through downstream dispatch, reliability, and settlement consequences. The mathematical contribution is a settlement-aware learning objective that couples learned uncertainty, resource-time credible-capacity certification, network-constrained multi-stage dispatch, and counterfactual marginal-contribution allocation while retaining an exact revenue-adequacy identity. The 33-node Zhangjiakou-type regional case uses 15 min intervals and comprises five resource classes: independent storage, data-center flexibility, industrial adjustable load, commercial demand response, and electric-vehicle aggregation. Relative to a fixed-ratio reserve rule, the proposed method lowers the regional balancing cost from 950 to 618 thousand USD (34.9%), achieves 97.8% renewable accommodation, limits the shortage probability to 0.7%, and attains a settlement-fairness index of 0.92. The framework solves a 500-asset instance in 118 s. External validation uses 4027 half-hour observations from the 2025 Elexon/BMRS market, including measured wind and solar output, day-ahead forecasts, load, imbalance prices, and procured-reserve prices. On the 1487-interval December test set, the proposed model reduces the replay cost from 2953.3 to 2598.2 thousand GBP (12.0%), decreases the shortage-interval frequency from 4.64% to 1.28%, and reaches 99.74% renewable accommodation. Comparisons with forecast-then-optimize, Wasserstein distributionally robust optimization, off-policy reinforcement learning, and graph-based behavioral cloning establish that the improvement comes from jointly learning which uncertainty matters for dispatch and which flexible capacity is deliverable.

EnergiesVol. 19(17)
North China Electric Power University (CN), State Grid Corporation of China (China) (CN), Ion Exchange (India) (IN)
Openalex Percentile: Top 18%
Electric Power System Optimization
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