Margi Shah, Yue Zhou, Jianzhong Wu, Max Mowbray
2026.2.1Engineering
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.