# VAE-GAN Based Price Manipulation in Coordinated Local Energy Markets

arXiv: https://arxiv.org/abs/2507.19844 · HTML: https://mlsanity.com/paper/2507.19844/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 4 of its 30 references that are in the map.
- First posted on arXiv 26 Jul 2025.

## Builds on (most cited first, 4 of 4)

- [Encoding in Style: a StyleGAN Encoder for Image-to-Image Translation](https://mlsanity.com/paper/2008.00951/) (2020)
- [Distributed Deep Reinforcement Learning for Intelligent Load Scheduling in Residential Smart Grids](https://mlsanity.com/paper/2006.16100/) (2020)
- [Multi-Agent Deep Deterministic Policy Gradient Algorithm for Peer-to-Peer Energy Trading Considering Distribution Network Constraints](https://mlsanity.com/paper/2108.09053/) (2021)
- [Skip the Benchmark: Generating System-Level High-Level Synthesis Data using Generative Machine Learning](https://mlsanity.com/paper/2404.14754/) (2024)

## Abstract (arXiv)

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.