A Reinforcement Learning Approach Based on Group Relative Policy Optimization for Economic Dispatch in Smart Grids

Abstract

The Economic Dispatch Problem (EDP) plays a critical role in power system operations by trying to allocate power generation across multiple units at minimal cost while satisfying complex operational constraints. Traditional optimization techniques struggle with the non-convexities introduced by factors such as valve-point effects, prohibited operating zones, and spinning reserve requirements. While metaheuristics methods have shown promise, they often suffer from convergence issues and constraint-handling limitations. In this study, we introduce a novel application of Group Relative Policy Optimization (GRPO), a reinforcement learning framework that extends Proximal Policy Optimization by integrating group-based learning and relative performance assessments. The proposed GRPO approach incorporates smart initialization, adaptive exploration, and elite-guided updates tailored to the EDP’s structure. Our method consistently produces high-quality, feasible solutions with faster convergence compared to state-of-the-art metaheuristics and learning-based methods. For instance, in the case of the 15-unit system, GRPO achieved the best cost of USD 32,421.67/h with full constraint satisfaction in just 4.24 s, surpassing many previous solutions. The algorithm also demonstrates excellent scalability, generalizability, and stability across larger-scale systems without requiring parameter retuning. These results highlight GRPO’s potential as a robust and efficient tool for real-time energy scheduling in smart grid environments.