High penetration of renewable energy sources brings both opportunities and challenges for Smart Grid operation. Due to their high contribution to energy consumption, aggregated load flexibility of small residential and service sector consumers has a potential to address the intermittency challenge of distributed generation. Predicting aggregated load flexibility of this consumer sector involves access to sensitive smart meter data, raising data collection and sharing concerns. Federated Learning, a decentralized machine learning technique that uses data distributed on user devices to construct an aggregated, global model, offers potential solutions to tackling this challenge. This paper explores the potential of using Federated Learning for flexibility prediction in Smart Grids through an analysis of its opportunities and implications for different stakeholders involved, as well as the challenges faced. The analysis shows that Federated Learning is a promising approach for building privacy-preserving energy portfolios of aggregated demand data.

Centralized management of power systems is becoming more challenging due to the increased introduction of distributed renewable energy resources, along with demand increase and aging infrastructures. To address these challenges, this paper proposes new mechanisms for decentralized energy management. Based on self-organization of consumers, prosumers and producers into virtual groups, called clusters, supply and demand of electricity is locally matched. Distributed multi-agent systems are used as a way to represent virtual cluster members. The mechanisms are illustrated, and static and dynamic virtual clusters are compared. Dynamic reconfiguration is achieved by varying the time periods for which clustering is performed. The proposed clustering mechanisms demonstrate that large-scale centralized energy systems can operate in a decentralized fashion when only local information is available.