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Peer-to-peer (P2P) energy trading is a decentralized energy market where local energy prosumers act as peers, trading energy among each other. Existing works in this area largely overlook the importance of user behavioral modeling, assume users’ sustained active participation, and full compliance in the decision-making process. To overcome these unrealistic assumptions, and their deleterious consequences, in this paper we propose an automated P2P energy trading framework that specifically considers the users’ perception by exploiting prospect theory . We formalize an optimization problem that maximizes the buyers’ perceived utility while matching energy production and demand. We prove that the problem is NP-hard and we propose a Differential Evolution-based Algorithm for Trading Energy ( DEbATE ) heuristic. Additionally, we propose two automated pricing solutions to improve the sellers’ profit based on reinforcement learning. The first solution, named Pricing mechanism with Q-learning and Risk-sensitivity ( PQR ), is based on Q-learning. Additionally, the given scalability issues of PQR , we propose a Deep Q-Network-based algorithm called ProDQN that exploits deep learning and a novel loss function rooted in prospect theory. Results based on real traces of energy consumption and production, as well as realistic prospect theory functions, show that our approaches achieve \(26\% \) higher perceived value for buyers and generate \(7\% \) more reward for sellers, compared to recent state-of-the-art approaches. 

With the acceleration of ICT technologies and the Internet of Things (IoT) paradigm, smart residential environments , also known as smart homes are becoming increasingly common. These environments have significant potential for the development of intelligent energy management systems, and have therefore attracted significant attention from both academia and industry. An enabling building block for these systems is the ability of obtaining energy consumption at the appliance-level. This information is usually inferred from electric signals data (e.g., current) collected by a smart meter or a smart outlet, a problem known as appliance recognition . Several previous approaches for appliance recognition have proposed load disaggregation techniques for smart meter data. However, these approaches are often very inaccurate for low consumption and multi-state appliances. Recently, Machine Learning (ML) techniques have been proposed for appliance recognition. These approaches are mainly based on passive MLs, thus requiring pre-labeled data to be trained. This makes such approaches unable to rapidly adapt to the constantly changing availability and heterogeneity of appliances on the market. In a home setting scenario, it is natural to consider the involvement of users in the labeling process, as appliances’ electric signatures are collected. This type of learning falls into the category of Stream-based Active Learning (SAL). SAL has been mainly investigated assuming the presence of an expert , always available and willing to label the collected samples. Nevertheless, a home user may lack such availability, and in general present a more erratic and user-dependent behavior. In this paper, we develop a SAL algorithm, called K -Active-Neighbors (KAN), for the problem of household appliance recognition. Differently from previous approaches, KAN jointly learns the user behavior and the appliance signatures. KAN dynamically adjusts the querying strategy to increase accuracy by considering the user availability as well as the quality of the collected signatures. Such quality is defined as a combination of informativeness , representativeness , and confidence score of the signature compared to the current knowledge. To test KAN versus state-of-the-art approaches, we use real appliance data collected by a low-cost Arduino-based smart outlet as well as the ECO smart home dataset. Furthermore, we use a real dataset to model user behavior. Results show that KAN is able to achieve high accuracy with minimal data, i.e., signatures of short length and collected at low frequency. 

Spurious power consumption data reported from compromised meters controlled by organized adversaries in the Advanced Metering Infrastructure (AMI) may have drastic consequences on a smart grid’s operations. While existing research on data falsification in smart grids mostly defends against isolated electricity theft, we introduce a taxonomy of various data falsification attack types, when smart meters are compromised by organized or strategic rivals. To counter these attacks, we first propose a coarse-grained and a fine-grained anomaly-based security event detection technique that uses indicators such as deviation and directional change in the time series of the proposed anomaly detection metrics to indicate: (i) occurrence, (ii) type of attack, and (iii) attack strategy used, collectively known as attack context . Leveraging the attack context information, we propose three attack response metrics to the inferred attack context: (a) an unbiased mean indicating a robust location parameter; (b) a median absolute deviation indicating a robust scale parameter; and (c) an attack probability time ratio metric indicating the active time horizon of attacks. Subsequently, we propose a trust scoring model based on Kullback-Leibler (KL) divergence, that embeds the appropriate unbiased mean, the median absolute deviation, and the attack probability ratio metric at runtime to produce trust scores for each smart meter. These trust scores help classify compromised smart meters from the non-compromised ones. The embedding of the attack context, into the trust scoring model, facilitates accurate and rapid classification of compromised meters, even under large fractions of compromised meters, generalize across various attack strategies and margins of false data. Using real datasets collected from two different AMIs, experimental results show that our proposed framework has a high true positive detection rate, while the average false alarm and missed detection rates are much lesser than 10% for most attack combinations for two different real AMI micro-grid datasets. Finally, we also establish fundamental theoretical limits of the proposed method, which will help assess the applicability of our method to other domains.