Demonstrating Quantum Scaling Advantage in Approximate Optimization for Energy Coalition Formation with 100+ Agents

Abstract

The formation of energy communities is pivotal for advancing decentralized and sustainable energy management. Within this context, Coalition Structure Generation (CSG) emerges as a promising framework. The complexity of CSG grows rapidly with the number of agents, making classical solvers impractical for even moderate sizes. This suggests CSG as an ideal candidate for benchmarking quantum algorithms against classical ones. Facing ongoing challenges in attaining computational quantum advantage for exact optimization, we pivot our focus to benchmarking quantum and classical solvers for approximate optimization. Approximate optimization is particularly critical for industrial use cases requiring real-time optimization, where finding high-quality solutions quickly is often more valuable than achieving exact solutions more slowly. Our findings indicate that quantum annealing (QA) on DWave can achieve solutions of comparable quality to our best classical solver, but with more favorable runtime scaling, showcasing an advantage. This advantage is observed when compared to solvers, such as Tabu search, simulated annealing, and the state-of-the-art solver Gurobi, in finding approximate solutions for energy community formation involving over 100 agents. DWave also surpasses 1-round QAOA on IBM hardware. Our findings represent the largest benchmark of quantum approximate optimizations for a real-world dense model beyond the hardware's native topology, where D-Wave demonstrates a scaling advantage.