PSDO: Privacy-Preserving Distributed Optimization for Autonomous Prosumer Energy Management

PSDO is a privacy-preserving framework for managing energy systems where prosumers (people who both consume and produce energy) can trade power without relying on a central authority. It combines decentralized optimization (a method where multiple parties solve problems together without one central controller) with differential privacy (a mathematical technique that adds noise to data to protect individual information), allowing prosumers to manage their energy autonomously while keeping their data private. Tests on an IEEE 33-bus system showed PSDO can find optimal solutions while protecting privacy better than existing methods.