Grounded, Compute-Efficient LLM Policy Agents for Energy-Poverty Equity in Physically-Constrained Peer-to-Peer Energy Markets
Read the original on arXiv Computation and Language →The paper introduces EqGrid, a closed‑loop simulation that uses a low‑frequency, open‑weight LLM policy agent to set price, carbon limits, and subsidies for a community of empirically‑grounded household personas, while high‑frequency multi‑agent RL traders clear a continuous double auction on a physically constrained IEEE‑33‑bus grid. It demonstrates that the LLM can reduce energy‑poverty inequality—lowering the Gini of energy burden from 0.351 to 0.305 and mean burden by 28%—without increasing net grid cost, and that a compressed sub‑1B model retains 92–95% of this benefit at dramatically lower inference energy. The study also establishes a compute‑efficiency frontier and a decoupled‑safety design that eliminates grid violations. whyItMatters":"By showing that a lightweight LLM can effectively manage energy markets to reduce poverty and inequality while staying energy‑efficient, the work offers a practical, low‑carbon AI solution for humanitarian energy‑poverty interventions."
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