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arXiv:2301.01108

Towards optimization under uncertainty for fundamental models in energy markets using quantum computers

M. C. Braun, T. Decker, N. Hegemann, S. F. Kerstan, F. Lorenz

Published Jan 3, 2023• 5 citations
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Abstract

We present a method to formulate the unit commitment problem in energy production as quadratic unconstrained binary optimization (QUBO) problem, which can be solved by classical algorithms and quantum computers. We suggest a first approach to consider uncertainties in the renewable energy supply, power demand and machine failures. We show how to find cost-saving solutions of the UCP under these uncertainties on quantum computers. We also conduct a study with different problem sizes and we compare results of simulated annealing with results from quantum annealing machines.

DOI
10.48550/arxiv.2301.01108

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We present a method to formulate the unit commitment problem in energy production as quadratic unconstrained binary optimization (QUBO) problem, which can be solved by classical algorithms and quantum computers. We suggest a first approach to consider uncertainties in the renewable energy supply, power demand and machine failures. We show how to find cost-saving solutions of the UCP under these uncertainties on quantum computers. We also conduct a study with different problem sizes and we compare results of simulated annealing with results from quantum annealing machines.
Uncertainty is fundamental in modern power systems, where renewable generation and fluctuating demand make stochastic optimization indispensable. The chance constrained unit commitment problem (UCP) captures this uncertainty but rapidly becomes computationally challenging as the number of scenarios grows. Quantum computing has been proposed as a potential route to overcome such scaling barriers. In this work, we evaluate the applicability of quantum annealing platforms to the chance constrained UCP. Focusing on a scenario approximation, we reformulated the problem as a mixed integer linear program and solved it using DWave hybrid quantum classical solver alongside Gurobi. The hybrid solver proved competitive under strict runtime limits for large scenario sets (15,000 in our experiments), while Gurobi remained superior on smaller cases. QUBO reformulations were also tested, but current annealers cannot accommodate stochastic UCPs due to hardware limits, and deterministic cases suffered from embedding overhead. Our study delineates where chance constrained UCPs can already be addressed with hybrid quantum classical methods, and where current quantum annealers remain fundamentally limited.
Abstract Uncertainty is fundamental in modern power systems, where renewable generation and fluctuating demand make stochastic optimization indispensable. In stochastic optimization, chance constraints enable the representation of uncertainty in renewable energy sources that affect the dispatch and commitment of bulk generation. This is commonly known as the chance-constrained unit commitment problem (UCP), which rapidly becomes computationally challenging as the number of scenarios grows. Quantum computing has been proposed as a potential route to overcome such scaling barriers. In this work, we evaluate the applicability of quantum annealing platforms to the chance-constrained UCP. Focusing on a scenario approximation, we reformulate the problem as a mixed-integer linear program (MILP) and solve it using D-Wave’s hybrid quantum–classical solver alongside the classical solver Gurobi. The hybrid solver proves competitive under strict runtime limits for large scenario sets (15,000 in our experiments), while Gurobi remains superior on smaller cases. QUBO reformulations have also been tested, but current annealers cannot accommodate stochastic UCPs due to hardware limits, and deterministic cases suffer from embedding overhead. Our study delineates where chance-constrained UCPs can already be addressed with hybrid quantum–classical methods, and where current quantum annealers remain fundamentally limited.
This paper investigates the use of Quantum Annealing (QA) devices for optimizing unit scheduling in renewable energy systems, addressing the challenge of energy balancing with intermittent generation. We compare two approaches for encoding inequality constraints in Quadratic Unconstrained Binary Optimization (QUBO) formulations: (a) the conventional slack-variable-based method and (b) a novel soft-encoding technique called unbalanced penalization. This first application of unbalanced penalization in the energy and power systems domain, aims to disseminate knowledge about near-term applications of quantum-computing and how to make best use of it within the community. Through computational experiments, we find thatUnbalanced Penalizationconsistently outperforms the conventional method of using slack variables by reducing the number of variables in the QUBO formulation. Despite this, its inherent nature penalizes feasible solutions unevenly, preventing the ability to handle much larger problem sizes. More broadly, we observe that both methods-like most pure quantum approaches-struggle with scalability on current QA hardware, as solution quality declines with increasing problem size. In light of these limitations, we assess the feasibility of purely quantum solutions and argue that hybrid approaches remain the most practical path forward.
This paper proposes a hybrid quantum-classical algorithm to solve a fundamental power system problem called unit commitment (UC). The UC problem is decomposed into a quadratic subproblem, a quadratic unconstrained binary optimization (QUBO) subproblem, and an unconstrained quadratic subproblem. A classical optimization solver solves the first and third subproblems, while the QUBO subproblem is solved by a quantum algorithm called quantum approximate optimization algorithm (QAOA). The three subproblems are then coordinated iteratively using a three-block alternating direction method of multipliers algorithm. Using Qiskit on the IBM Q system as the simulation environment, simulation results demonstrate the validity of the proposed algorithm to solve the UC problem.
Stochastic Unit Commitment (SUC) has been proposed to manage the uncertainties driven by renewable integration, but it leads to significant computational complexity. When accelerated by Benders Decomposition (BD), the master problem becomes binary integer programming, which is still NP-hard and computationally demanding for classical methods. Quantum Annealing (QA), known for efficiently solving Quadratic Unconstrained Binary Optimization (QUBO) problems, presents a potential solution. However, existing quantum algorithms rely on slack variables to handle linear binary inequality constraints, leading to increased qubit consumption and reduced computational efficiency. To solve the problem, this paper introduces the Powell-Hestenes-Rockafellar Augmented Lagrangian Multiplier (PHR-ALM) method to eliminate the need for slack variables, making qubit consumption independent of the increasing number of Benders cuts. To further reduce the qubit overhead, quantum ADMM is applied to break large-scale SUC into smaller blocks for sequential solutions, which does not scale with the number of generators. Finally, the simulation results on both 4-generator and the IEEE bus-118 systems demonstrate the feasibility and scalability of the proposed algorithm, indicating its superior qubit and runtime efficiency over classical and baseline quantum approaches on the D-Wave QPU platform.
Unit Commitment (UC) is a core optimization problem in power system operation and electricity market scheduling. It determines the optimal on/off status and dispatch of generating units while satisfying system, operational, and market constraints. Traditionally, UC has been solved using mixed-integer programming, dynamic programming, or metaheuristic methods, all of which face scalability challenges as systems grow in size and uncertainty. Recent advances in quantum computing, spanning quantum annealing, variational algorithms, and hybrid quantum classical optimization, have opened new opportunities to accelerate UC solution processes by exploiting quantum parallelism and entanglement. This paper presents a comprehensive survey of existing research on the applications of quantum computing for solving the UC problem. The reviewed works are categorized based on the employed quantum paradigms, including annealing-based, variational hybrid, quantum machine learning, and quantum-inspired methods. Key modeling strategies, hardware implementations, and computational trade-offs are discussed, highlighting the current progress, limitations, and potential future directions for large-scale quantum-enabled UC.