Federated Learning for Credit Risk Assessment

in Proceedings of the 56th Hawaii International Conference on System Sciences (2023, January 03)

Credit risk assessment is a standard procedure for financial institutions (FIs) when estimating their credit risk exposure. It involves the gathering and processing quantitative and qualitative datasets ... [more ▼]

Credit risk assessment is a standard procedure for financial institutions (FIs) when estimating their credit risk exposure. It involves the gathering and processing quantitative and qualitative datasets to estimate whether an individual or entity will be able to make future required payments. To ensure effective processing of this data, FIs increasingly use machine learning methods. Large FIs often have more powerful models as they can access larger datasets. In this paper, we present a Federated Learning prototype that allows smaller FIs to compete by training in a cooperative fashion a machine learning model which combines key data derived from several smaller datasets. We test our prototype on an historical mortgage dataset and empirically demonstrate the benefits of Federated Learning for smaller FIs. We conclude that smaller FIs can expect a significant performance increase in their credit risk assessment models by using collaborative machine learning. [less ▲]

Abstracts of the 11th DACH+ Conference on Energy Informatics (S53-Taxonomy of Local Flexibility Markets)

in Energy Informatics (2022, September 07), 5

Flexibility has risen as a potential solution and complement for system operators’ current and future problems (e.g., congestion, voltage) caused by integrating distributed renewable resources (e.g., wind ... [more ▼]

Flexibility has risen as a potential solution and complement for system operators’ current and future problems (e.g., congestion, voltage) caused by integrating distributed renewable resources (e.g., wind, solar) and electric vehicles. In parallel, local flexibility markets (LFM) emerge as a possible smart grid solution to bridge between flexibility-seeking customers and flexibility-offering customers in localized areas. Nevertheless, there is no unique, standard, or simple solution to tackle all the problems system operators and other energy actors face. Therefore, many local flexibility market concepts, initiatives (projects), and companies have developed various solutions over the last few years. At the same time, they increased the complexity of the topic. Thus, this research paper aims to describe several local flexibility market concepts, initiatives (projects), and companies in Europe. To do so, we propose a taxonomy derived from LFMs descriptions. We use the taxonomy-building research method proposed by [1] to develop our taxonomy. Moreover, we use the smart grid architecture model (SGAM) as a structural and foundation guideline. Given the numerous and diverse LFM solutions, we delimit the taxonomy by considering solutions focused on congestion management on medium and low voltage (meta-characteristic). [less ▲]

Integration der Flexibilitätsvermarktung

in Energieflexibilität in der deutschen Industrie: Band 2 - Markt- und Stromsystem, Managementsysteme und Technologien energieflexibler Fabriken (DOI: https://doi.org/10.24406/publica-258) (2022)

Die Energiesynchronisationsplattform adressiert den gesamten Prozess des automatisierten Energieflexibilitätshandels von der Maschine bis zu den Vermarktungsservices. Sie stellt somit das übergeordnete ... [more ▼]

Die Energiesynchronisationsplattform adressiert den gesamten Prozess des automatisierten Energieflexibilitätshandels von der Maschine bis zu den Vermarktungsservices. Sie stellt somit das übergeordnete Gesamtkonzept eines digitalen Ökosystems dar, welches industrielle Nachfrageflexibilität ermöglicht. Die Energiesynchronisationsplattform besteht dabei aus unternehmensindividuellen Unternehmensplattformen und einer zentralen Marktplattform. Der Marktplattform kommt die Rolle der Servicevermittlung zu. Dies ermöglicht es, auf Veränderungen innerhalb der Services bzw. der Marktplattform schnell reagieren zu können. Im vorliegenden Kapitel werden beispielhafte Services der Unternehmens- und Marktplattformen beschrieben. Zudem wird ein Überblick über die Referenzabläufe für den Betrieb und die Vermarktung von Energieflexibilität gegeben. Die Prozesse werden anhand eines möglichen Anwendungsfalls dargestellt. Außerdem wird das weiterentwickelte Energieflexibilitätsdatenmodell vorgestellt und anhand von vier Klassen beschrieben. Zur Bedrohungsanalyse im Kontext der IT-Sicherheit werden Threat Models (Bedrohungsmodelle) angewandt und auf Basis verschiedener Sicherheitslevels vorgestellt. Darüber hinaus werden Rollen- und Rechtedefinitionen beschrieben und Anforderungen an die IT-Sicherheit abgeleitet. Eine Kurzvorstellung entwickelter Demonstratoren schließt das Kapitel ab. [less ▲]

Energieflexibilitätsdatenmodell der Energiesynchronisationsplattform: Teil der Reihe Diskussionspapiere V4 Konzept der Energiesynchronisationsplattform

Report (2021)

The energy flexibility data model developed within the framework of SynErgie is used for the generic and standardised description and modelling of energy flexibility. The data model enables (partially ... [more ▼]

The energy flexibility data model developed within the framework of SynErgie is used for the generic and standardised description and modelling of energy flexibility. The data model enables (partially) automated information technology processing of a wide variety of flexibility. The aim is to develop a comprehensive data model to map flexibility in a flexibility space and concrete flexibility measures. The aim is not to create a completely realistic representation of a flexibility. The focus is on mapping technically and energetically relevant information in a granularity that enables the communication of flexibility between industrial companies and energy markets. [less ▲]

Referenzarchitektur der Energiesynchronisationsplattform: Teil der Reihe Diskussionspapiere V4 Konzept der Energiesynchronisationsplattform

Report (2021)

The Energy Synchronisation Platform (ESP) maps the entire process of information-automated energy flexibility trading from the machine to the energy market. The ESP is thus the overall concept that ... [more ▼]

The Energy Synchronisation Platform (ESP) maps the entire process of information-automated energy flexibility trading from the machine to the energy market. The ESP is thus the overall concept that enables industrial demand flexibility. This discussion paper on the ESP reference architecture is an update of an older version presented in Reinhart et al. (2020). Since then, the development of individual services has been discontinued and the market platform (MP) is no longer designed as a broker architecture. It now serves as the first point of contact between industrial companies and service providers and takes on an intermediary role. The Enterprise Platform (UP) thus takes on a more important role in terms of communication within ESP, as all communication with services now takes place via the UP. Furthermore, in this detailed discussion paper we provide a collection of the different services that have been developed within SynErgie for the MP and the UP. Each service presented includes a brief description, the relevant inputs and outputs, and other relevant comments. Furthermore, an overview of the primary reference processes considered for the operation and marketing of flexibility is provided. These are presented on the basis of three possible use cases. Thus, logic and interactions of the different processes within the ESP are shown [less ▲]

A Novel Methodology for the Scalability Analysis of ICT Systems for Smart Grids Based on SGAM: The InteGrid Project Approach

in Energies (2020), 13(15 3818),

Information and Communication Technology (ICT) infrastructures are at the heart of emerging Smart Grid scenarios with high penetration of Distributed Energy Resources (DER). The scalability of such ICT ... [more ▼]

Information and Communication Technology (ICT) infrastructures are at the heart of emerging Smart Grid scenarios with high penetration of Distributed Energy Resources (DER). The scalability of such ICT infrastructures is a key factor for the large scale deployment of the aforementioned Smart Grid solutions, which could not be ensured by small-scale pilot demonstrations. This paper presents a novel methodology that has been developed in the scope of the H2020 project InteGrid, which enables the scalability analysis of ICT infrastructures for Smart Grids. It is based on the Smart Grid Architecture Model (SGAM) framework, which enables a standardized and replicable approach. This approach consists of two consecutive steps: a qualitative analysis that aims at identifying potential bottlenecks in an ICT infrastructure; and a quantitative analysis of the identified critical links under stress conditions by means of simulations with the aim of evaluating their operational limits. In this work the proposed methodology is applied to a cluster of solutions demonstrated in the InteGrid Slovenian pilot. This pilot consists of a Large Customer Commercial Virtual Power Plant (VPP) that provides flexibility in medium voltage for tertiary reserve and a Traffic Light System (TLS) to validate such flexibility offers. This approach creates an indirect Transmission System Operator (TSO)—Distribution System Operator (DSO) coordination scheme. [less ▲]