Electric Power System OptimizationIron and Steelmaking ProcessesIntegrated Energy Systems Optimization

Margi Shah, Yue Zhou, Jianzhong Wu, Max Mowbray

2026.2.1Engineering

DOI: 10.1016/j.eng.2025.12.038

Abstract

The steel industry, characterized by its substantial energy consumption, is grappling with rising energy costs and the imperative to decarbonize. However, the scheduling of a steel plant is challenged by the complexity and interdependency of its processes with various uncertainties. This study introduces a deep reinforcement learning (DRL) methodology specifically designed to optimize scheduling in the presence of the exogenous uncertainties brought by electricity prices and on-site renewable generation. The scheduling problem is formulated as a partially observable Markov decision process (POMDP), which enables decision-making despite the state not being fully observable. The attention mechanism is utilized to abstract a representation of a window of observations upon which decisions are conditioned. The control space is defined by domain knowledge-informed heuristic rules, and evolutionary search is utilized for the purpose of policy optimization. The case study considers an electric arc furnace (EAF)-based steel plant with various problem sizes and processing times for steelmaking tasks. The performance of the proposed method is compared with a traditional mixed integer linear programming (MILP) approach and the policy gradient method, proximal policy optimization (PPO). The proposed method is evaluated under uncertainty conditions arising from market prices and on-site renewable energy sources. Case study results reveal that the proposed DRL strategy effectively integrates uncertainties into real-time decision-making, achieving a desirable performance level with minimal online computational cost.

Citation format

SHAH, Margi, et al. Deep reinforcement learning for scheduling of a steel plant in the electricity spot market. Engineering, 2026.