# Uncertainty-Aware Knowledge Transformers for Peer-to-Peer Energy Trading with Multi-Agent Reinforcement Learning

arXiv: https://arxiv.org/abs/2507.16796 · HTML: https://mlsanity.com/paper/2507.16796/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 11 of its 39 references that are in the map.
- First posted on arXiv 22 Jul 2025.

## Builds on (most cited first, 11 of 11)

- [Attention Is All You Need](https://mlsanity.com/paper/1706.03762/) (2017)
- [Optuna: A Next-generation Hyperparameter Optimization Framework](https://mlsanity.com/paper/1907.10902/) (2019)
- [Informer: Beyond Efficient Transformer for Long Sequence Time-Series Forecasting](https://mlsanity.com/paper/2012.07436/) (2020)
- [Autoformer: Decomposition Transformers with Auto-Correlation for Long-Term Series Forecasting](https://mlsanity.com/paper/2106.13008/) (2021)
- [FEDformer: Frequency Enhanced Decomposed Transformer for Long-term Series Forecasting](https://mlsanity.com/paper/2201.12740/) (2022)
- [DeepAR: Probabilistic Forecasting with Autoregressive Recurrent Networks](https://mlsanity.com/paper/1704.04110/) (2017)
- [Temporal Fusion Transformers for Interpretable Multi-horizon Time Series Forecasting](https://mlsanity.com/paper/1912.09363/) (2019)
- [Deep Reinforcement Learning for Multi-Agent Systems: A Review of Challenges, Solutions and Applications](https://mlsanity.com/paper/1812.11794/) (2018)
- [Uncertainty in Neural Networks: Approximately Bayesian Ensembling](https://mlsanity.com/paper/1810.05546/) (2018)
- [Managing Price Uncertainty in Prosumer-Centric Energy Trading: A Prospect-Theoretic Stackelberg Game Approach](https://mlsanity.com/paper/1709.06071/) (2017)
- [Reinforcement Learning Enabled Peer-to-Peer Energy Trading for Dairy Farms](https://mlsanity.com/paper/2405.12716/) (2024)

## Abstract (arXiv)

This paper presents a novel framework for Peer-to-Peer (P2P) energy trading that integrates uncertainty-aware prediction with multi-agent reinforcement learning (MARL), addressing a critical gap in current literature. In contrast to previous works relying on deterministic forecasts, the proposed approach employs a heteroscedastic probabilistic transformer-based prediction model called Knowledge Transformer with Uncertainty (KTU) to explicitly quantify prediction uncertainty, which is essential for robust decision-making in the stochastic environment of P2P energy trading. The KTU model leverages domain-specific features and is trained with a custom loss function that ensures reliable probabilistic forecasts and confidence intervals for each prediction. Integrating these uncertainty-aware forecasts into the MARL framework enables agents to optimize trading strategies with a clear understanding of risk and variability. Experimental results show that the uncertainty-aware Deep Q-Network (DQN) reduces energy purchase costs by up to 5.7% without P2P trading and 3.2% with P2P trading, while increasing electricity sales revenue by 6.4% and 44.7%, respectively. Additionally, peak hour grid demand is reduced by 38.8% without P2P and 45.6% with P2P. These improvements are even more pronounced when P2P trading is enabled, highlighting the synergy between advanced forecasting and market mechanisms for resilient, economically efficient energy communities.