# Differentiable Electricity-Market Clearing for Gradient-Based Planning

arXiv: https://arxiv.org/abs/2609.02646 · HTML: https://mlsanity.com/paper/2609.02646/

## Key facts

- No citing papers in the map yet (data through 14 Oct 2026).
- Builds on 4 of its 12 references that are in the map.
- First posted on arXiv 2 Sep 2026.

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

- [OptNet: Differentiable Optimization as a Layer in Neural Networks](https://mlsanity.com/paper/1703.00443/) (2017)
- [Differentiable Convex Optimization Layers](https://mlsanity.com/paper/1910.12430/) (2019)
- [Efficient and Modular Implicit Differentiation](https://mlsanity.com/paper/2105.15183/) (2021)
- [Flexible Differentiable Optimization via Model Transformations](https://mlsanity.com/paper/2206.06135/) (2022)

## Abstract (arXiv)

Planning a large data center is difficult because a facility big enough to matter changes the electricity prices it will pay. Those prices are set by market clearing, a constrained optimization problem solved anew in every operating condition. However, simulating the market tells a planner how a candidate plan performs but not how to improve it. Here we treat market clearing as a differentiable optimization layer: each forward pass solves the market, and reverse-mode automatic differentiation propagates the planning cost back through the cleared prices to the plan. After validating these gradients against finite differences, we apply them to a concrete problem: allocating 50 MW of data-center load across six candidate buses in two synthetic networks, under a fixed cost per active site, evaluated over 36 operating states. Judged against exhaustive enumeration of all site combinations, gradient optimization recovers the continuous allocations almost exactly, with worst-case objective gaps of 2.3% and 8.5% of the cost difference between the best and worst single site. Its one systematic error is instructive: near the costs at which a site should close, the smooth relaxation of the discrete site count shrinks the site rather than closing it, so discrete transitions arrive late. Differentiable market clearing thus turns market-aware planning into a problem gradients can search.