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1 Distributed Optimal Coordination for Distributed Energy Resources in Power Systems Di Wu, Member, IEEE, Tao Yang, Member, IEEE, Anton A. Stoorvogel, Senior Member, IEEE, and Jakob Stoustrup, Senior Member, IEEE Abstract—Driven by smart grid technologies, distributed en- ergy resources (DERs) have been rapidly developing in recent years for improving reliability and efficiency of distribution sys- tems. Emerging DERs require effective and efficient coordination in order to reap their potential benefits. In this paper, we consider an optimal DER coordination problem over multiple time periods subject to constraints at both system and device levels. Fully distributed algorithms are proposed to dynamically and auto- matically coordinate distributed generators with multiple/single storages. With the proposed algorithms, the coordination agent at each DER only maintains a set of variables and updates them through information exchange with a few neighbors. We show that the proposed algorithms with properly chosen parameters solve the DER coordination problem as long as the underlying communication network is connected. Simulation results are used to illustrate and validate the proposed method. Note to Practitioners—This paper was motivated by the prob- lem of coordinating distributed energy resources (DERs) in order to increase the reliability and efficiency of distribution systems. Existing approaches are centralized, where a single control center gathers information from and provides control signals to the entire system. This centralized control framework may be sub- jected to performance limitations, such as high communication requirement and cost, substantial computational burden, limited flexibility, and disrespect of privacy. To overcome these limitations and accommodate various resources in the future smart grid, in this paper, we develop an alternative distributed control strategy, where each DER only communicates with its neighbors, without a need for a central coordinator. In this paper, only distributed generators and energy storage devices are considered. In future research, we will extend the proposed algorithms to include other types of flexible resources, such as thermostatically controlled loads, plug-in electric vehicles, and deferrable loads. Index Terms—Consensus and gradient algorithm, distributed coordination, energy storage, multi-agent systems, multi-step optimization, smart grid. NOMENCLATURE D t Total demand of period t. E max i Energy capacity of storage device i. E i,t Energy stored in storage i at time period t. This material is based upon work supported by the Laboratory Directed Research and Development (LDRD) Program through the Control of Complex Systems Initiative at the Pacific Northwest National Laboratory. (Correspond- ing author: T. Yang; Tel: +1 940-891-6876.) D. Wu is with the Pacific Northwest National Laboratory, Richland, WA 99354. Email: [email protected]. T. Yang is with the Department of Electrical Engineering, University of North Texas, Denton, TX 76203. Email: [email protected]. A.A. Stoorvogel is with the Department of Electrical Engineering, Mathe- matics and Computer Science, University of Twente, Enschede, The Nether- lands. Email: [email protected]. J. Stoustrup is with the Department of Electronic Systems, Aalborg Uni- versity, Aalborg, Denmark. Email: [email protected]. N Number of distributed generators. M Number of distributed storage devices. p i,t Power from generator or storage i during period t. The power from storage is measured at the grid coupling point, and is positive when injecting power into grid, i.e., using generator convention. p min i , p max i Lower and upper bound of the power limits of device i, respectively. p batt i,t Rate of change of energy stored in storage device i at the end of period t, which is positive when storage device is discharged. T Number of time periods. Δp i , Δ p i Lower and upper bound of ramping rates of generator i, respectively. ΔT Time step size. η + i , η - i Discharging and charging efficiency of storage device i, respectively, including components such as conductor, power electronics, and battery. I. I NTRODUCTION A smart grid integrates advanced sensing and communi- cation technologies as well as control methods into existing power systems at both transmission and distribution levels. Distributed generation (DG) and energy storage (ES) are important ingredients of the emerging smart grid paradigm. For ease of reference, these resources are often referred to as distributed energy resources (DERs) [1]–[3]. Much of the DERs emerging under the smart grid are targeted at the distribution level. They are small and highly flexible compared with conventional large-scale power plants. The deployment of DERs will not only defer infrastructure investment, but also meet additional reserve requirement from intermittent renewable generation. As the electric power grid continues to modernize, DERs can help facilitate the transition to a future smart grid [4], [5]. In order to effectively deploy DERs, proper coordination and control need to be designed. One solution to this problem can be achieved through a completely centralized control strategy, where a single control center gathers information from and provides control signals to the entire system. This centralized control framework may be subjected to perfor- mance limitations, such as high communication requirement and cost, substantial computational burden, limited flexibil- ity, and disrespect of privacy [6]–[8]. To overcome these limitations and accommodate various resources in the future smart grid, it is desirable to develop an alternative distributed

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Page 1: Distributed Optimal Coordination for Distributed Energy ...kom.aau.dk/~jakob/selPubl/papers2017/tase_2017.pdf · Distributed Optimal Coordination for Distributed Energy Resources

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Distributed Optimal Coordination for DistributedEnergy Resources in Power Systems

Di Wu, Member, IEEE, Tao Yang, Member, IEEE, Anton A. Stoorvogel, Senior Member, IEEE,and Jakob Stoustrup, Senior Member, IEEE

Abstract—Driven by smart grid technologies, distributed en-ergy resources (DERs) have been rapidly developing in recentyears for improving reliability and efficiency of distribution sys-tems. Emerging DERs require effective and efficient coordinationin order to reap their potential benefits. In this paper, we consideran optimal DER coordination problem over multiple time periodssubject to constraints at both system and device levels. Fullydistributed algorithms are proposed to dynamically and auto-matically coordinate distributed generators with multiple/singlestorages. With the proposed algorithms, the coordination agentat each DER only maintains a set of variables and updates themthrough information exchange with a few neighbors. We showthat the proposed algorithms with properly chosen parameterssolve the DER coordination problem as long as the underlyingcommunication network is connected. Simulation results are usedto illustrate and validate the proposed method.

Note to Practitioners—This paper was motivated by the prob-lem of coordinating distributed energy resources (DERs) in orderto increase the reliability and efficiency of distribution systems.Existing approaches are centralized, where a single control centergathers information from and provides control signals to theentire system. This centralized control framework may be sub-jected to performance limitations, such as high communicationrequirement and cost, substantial computational burden, limitedflexibility, and disrespect of privacy. To overcome these limitationsand accommodate various resources in the future smart grid, inthis paper, we develop an alternative distributed control strategy,where each DER only communicates with its neighbors, withouta need for a central coordinator. In this paper, only distributedgenerators and energy storage devices are considered. In futureresearch, we will extend the proposed algorithms to include othertypes of flexible resources, such as thermostatically controlledloads, plug-in electric vehicles, and deferrable loads.

Index Terms—Consensus and gradient algorithm, distributedcoordination, energy storage, multi-agent systems, multi-stepoptimization, smart grid.

NOMENCLATURE

Dt Total demand of period t.Emaxi Energy capacity of storage device i.

Ei,t Energy stored in storage i at time period t.

This material is based upon work supported by the Laboratory DirectedResearch and Development (LDRD) Program through the Control of ComplexSystems Initiative at the Pacific Northwest National Laboratory. (Correspond-ing author: T. Yang; Tel: +1 940-891-6876.)

D. Wu is with the Pacific Northwest National Laboratory, Richland, WA99354. Email: [email protected].

T. Yang is with the Department of Electrical Engineering, University ofNorth Texas, Denton, TX 76203. Email: [email protected].

A.A. Stoorvogel is with the Department of Electrical Engineering, Mathe-matics and Computer Science, University of Twente, Enschede, The Nether-lands. Email: [email protected].

J. Stoustrup is with the Department of Electronic Systems, Aalborg Uni-versity, Aalborg, Denmark. Email: [email protected].

N Number of distributed generators.M Number of distributed storage devices.pi,t Power from generator or storage i during period

t. The power from storage is measured at thegrid coupling point, and is positive when injectingpower into grid, i.e., using generator convention.

pmini , pmax

i Lower and upper bound of the power limits ofdevice i, respectively.

pbatti,t Rate of change of energy stored in storage device

i at the end of period t, which is positive whenstorage device is discharged.

T Number of time periods.∆p

i, ∆pi Lower and upper bound of ramping rates of

generator i, respectively.∆T Time step size.η+i , η−i Discharging and charging efficiency of storage

device i, respectively, including components suchas conductor, power electronics, and battery.

I. INTRODUCTION

A smart grid integrates advanced sensing and communi-cation technologies as well as control methods into existingpower systems at both transmission and distribution levels.Distributed generation (DG) and energy storage (ES) areimportant ingredients of the emerging smart grid paradigm.For ease of reference, these resources are often referred toas distributed energy resources (DERs) [1]–[3]. Much of theDERs emerging under the smart grid are targeted at thedistribution level. They are small and highly flexible comparedwith conventional large-scale power plants. The deploymentof DERs will not only defer infrastructure investment, butalso meet additional reserve requirement from intermittentrenewable generation. As the electric power grid continues tomodernize, DERs can help facilitate the transition to a futuresmart grid [4], [5].

In order to effectively deploy DERs, proper coordinationand control need to be designed. One solution to this problemcan be achieved through a completely centralized controlstrategy, where a single control center gathers informationfrom and provides control signals to the entire system. Thiscentralized control framework may be subjected to perfor-mance limitations, such as high communication requirementand cost, substantial computational burden, limited flexibil-ity, and disrespect of privacy [6]–[8]. To overcome theselimitations and accommodate various resources in the futuresmart grid, it is desirable to develop an alternative distributed

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control strategy, where the agent at each DER maintains a setof variables and updates them through information exchangewith a few neighbors. During the past few years, variousdistributed coordination strategies have been proposed for DGsfor a single period. The authors of [9] propose a distributedratio consensus based algorithm. This distributed algorithmis later robustified against potential packet drops in commu-nication networks and applied to DG coordination in [10].In [11], a strategy based on the local replicator equation ispresented. In [12], an efficient decentralized algorithm calledCombinatorial Optimization Heuristic for Distributed Agentsis designed to optimally coordinate distributed resources ina fully decentralized manner. Other algorithms that can beapplied to DG coordination include a leader-follower consen-sus algorithm [13], a consensus based algorithm where agentscollectively learn the system imbalance [14], a distributedalgorithm based on the consensus and bisection method [15],a minimum-time consensus algorithm [16], and a distributedalgorithm based on the push-sum and gradient method [17],just to name a few.

Recent developments and advances in ES technology aremaking its application a viable solution for increasing flexibil-ity and improving reliability and robustness of power systems[18]. In [19], a distributed coordination algorithm is proposedto utilize batteries of plug-in electric vehicles to shift load andtherefore minimize the energy cost. However, the utilizationof DGs and their coordination with storage devices are notconsidered. In order to fully explore the benefits of DERs,the authors of [20] propose a distributed algorithm based onthe consensus + innovation method to coordinate ES and DGover multiple time periods in a microgrid. In the formulationof the optimal coordination problem, a quadratic generationcost function of ES is included in the objective function. Withsuch an assumption, the objective function is strictly convexand thus charging/discharging power can be determined fora given marginal cost during the iteration process, similarlyas for generators. However, unlike generators, there is nofuel cost associated with discharging a storage. The cost ofpower and energy discharged from storages has already beencaptured in generators’ cost when the storage is charged.Moreover, the charging and discharging efficiencies are notmodeled. As shown in [21], [22] and other existing studies, theoptimal charging/discharging operation and the correspondingbenefits from a storage device could vary significantly with itsefficiencies.

To overcome these two shortcomings, we have previouslydeveloped a distributed DER coordination strategy, where noartificially assigned cost function is needed for storage andcharging/discharging losses are modeled [23]. In that work,we considered DER coordination with a single storage andproposed a distributed algorithm based on the leader-followerconsensus algorithm with the leader to be the storage. Thispaper extends our previous work to the multi-storage case.Moreover, the proposed algorithms in this paper do not requireany leader and therefore are fully distributed. In the proposedalgorithms, each agent only maintains a few variables andupdates them through information exchange with neighboringDERs. The algorithms are based on the consensus and gradient

strategy for the local incremental cost update, where theconsensus part ensures that the incremental cost at all agentsasymptotically approach the same value based on only localinformation exchange, and the gradient part ensures that thepower balance condition is met. We show that the proposedalgorithms with appropriately chosen parameters solve DERcoordination as long as the underlying communication networkis connected.

The remainder of the paper is organized as follows: InSection II, some preliminaries on graph theory and notationsare introduced. Section III presents the formulation of multi-step optimal DER coordination problem. In Section IV, afully distributed DER coordination algorithm with multiplestorages is first developed, and a simplified distributed DERcoordination algorithm is proposed for the single storage case.Section V presents case studies and simulation results. Finally,concluding remarks are drawn in Section VI. Appendix Aprovides the technical proof of Theorem 2.

II. PRELIMINARIES

We first recall some basic concepts from graph theory [24].A weighted directed graph G is defined by a triple (V, E ,A)where V = 1, . . . , n is a node set, E is a set of pairs ofnodes indicating connections among nodes, and A = [aij ] ∈Rn×n is the weighting matrix, with aij > 0 if and only if(i, j) ∈ E and aii = 0. Each pair in E is called an edge.The graph is undirected if (i, j) ∈ E if and only if (j, i) ∈ Eand moreover aij = aji. A path from node i1 to ik is asequence of nodes i1, . . . , ik such that (ij , ij+1) ∈ E forj = 1, . . . , k− 1. An undirected graph G is connected if thereexists a path between any pair of distinct nodes. For a graphG, a matrix L = [`ij ] with `ii =

∑nj=1 aij and `ij = −aij

for j 6= i, is called the Laplacian matrix associated with thegraph G. If the undirected weighted graph G is connected, thenthe Laplacian matrix L has a simple eigenvalue at zero withcorresponding right eigenvector 1 and all other eigenvalues arestrictly positive.

Given a matrix A, A′ denotes its transpose and ‖A‖ denotesits induced norm. We denote by A⊗B the Kronecker productbetween matrices. In denotes the identity matrix of dimensionn× n.

III. PROBLEM FORMULATION

We consider a distribution system including N DGs andM storage devices, where the first N systems are generatorsand the last M systems are storage devices. The objectiveof optimal coordination is to minimize the total productioncost on the premise that all the DGs and storage devicescollectively provide a required amount of power within in-dividual generation and storage capacity. Since there is onlylimited energy that can be stored in a storage device, theoperation of storages in different time steps is interdependent.Thus it is indispensable to optimize over multiple time stepsconcurrently. In order to take into account these inter-temporal

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constraints and to make efficient use of storage devices, weformulate the following multi-step optimization problem:

P: minpi,t,pbatt

i,t,Ei,t

T∑t=1

N∑i=1

Ci(pi,t), (1a)

s.t.N+M∑i=1

pi,t −Dt = 0 ∀t ∈ T (1b)

∆pi≤ pi,t − pi,t−1 ≤ ∆pi ∀t ∈ T , ∀i ∈ N (1c)

pmini ≤ pi,t ≤ pmax

i ∀t ∈ T , ∀i ∈ L (1d)

pbatti,t =

pi,tη+i, if pi,t ≥ 0

pi,tη−i , if pi,t < 0

∀t ∈ T , ∀i ∈M (1e)

Ei,t = Ei,t−1 − pbatti,t ∆T ∀t ∈ T , ∀i ∈M (1f)

0 ≤ Ei,t ≤ Emaxi ∀t ∈ T , ∀i ∈M (1g)

Ei,T = Ei,0 ∀i ∈M (1h)

where T = 1, . . . , T, N = 1, . . . , N, M = N +1, . . . , N +M, and L = 1, . . . , N +M. Note that pi,0 andEi,0 are initial values prior to coordination, which thereforebecome parameters in the optimization problem. The objectivefunction and constraints are described below:• The objective expressed in (1a) includes the total production

cost within the look-ahead window of T . Ci(pi,t) is the costfunction of generator i for period t, which is dominatedby fuel cost. A quadratic function is used to representgeneration cost as a function of power output [25], whichis given by

Ci(pi,t) = aip2i,t + bipi,t + ci, (2)

where ai > 0. The operating and maintenance cost as-sociated with energy storage is assumed to be fixed, andtherefore excluded from the objective function. When dis-charging the storage, there is no need to consider thecost of power/energy obtained from storage, because thestored energy is essentially obtained from generators andhas been already included in the generators’ productioncost. In addition, cost of energy losses associated withcharging/discharging operation of storage has also beentaken into account in production cost of generators throughthe energy/power balancing constraint and modeling ofstorage charging/discharging efficiency.

• Constraint (1b) corresponds to the power balance at eachtime step, i.e., the total output from generators and storagedevices must be equal to the system load at each period.In power system operation, it is typically required that theload can be served solely by generators in order to ensurethe system reliability, i.e.

N∑i=1

pmini ≤ Dt ≤

N∑i=1

pmaxi . (3)

Constraint (1c) enforces ramping up/down constraints forgenerators. The ramping rates of storage devices are usu-ally very high and can be excluded from the constraints.Constraint (1d) corresponds to power output limits of eachdevice. Constraint (1e) expresses rate of change of en-ergy stored in storage devices. Constraint (1f) captures the

dynamics of energy stored in storage device. Constraint(1g) restricts the energy stored in the storage device tobe between its lower and upper bounds. Constraint (1h)specifies the energy stored in a storage device at the endof the scheduling period. It is equal to the initial energystate in this formulation but can be set to other feasiblevalues.

It should be noted that the cost of discharging energy and thecorresponding energy losses in storage devices are captured bythe cost functions in (1a) through the power balance constraintin (1b) and charging/discharging efficiency model in (1e). Forexample, charging 1 kWh energy during an off-peak hour intostorage i only yields η+

i η−i kWh energy discharged during

peak hours. Because of the power balance constraint in (1b),that 1 kWh charging energy must be provided by generatorsduring the off-peak charging hour. The corresponding cost of1 kWh charging energy (including η+

i η−i for discharging and

1−η+i η−i for losses) is captured in the generators’ cost in that

hour.In this paper, we assume information exchange between

DGs and storage devices is described by an undirected con-nected graph composed of N + M nodes, where the firstN nodes correspond to generators and the last M nodescorrespond to storage devices. Our objective is to solve theglobal optimization problem (1) in a distributed fashion.

A. Modified Equivalent Problem

For ∀i ∈ M (storage), let Ωp,i be the set of all pi ∈ RTfor which (1d)–(1h) are satisfied, where

pi =(pi,1, pi,2, . . . , pi,T

)′. (4)

Due to non-convex constraint (1e), the set Ωp,i is in general notconvex, and thus the original problem (1) is difficult to solveeven in a centralized manner. Hence, we need to convert theoriginal problem to its convex equivalency. To do so, define

pi,t = p+i,t − p

−i,t, ∀t ∈ T , ∀i ∈M (5)

where

0 ≤ p+i,t ≤ p

maxi , 0 ≤ p−i,t ≤ −p

mini , t ∈ T , ∀i ∈M (1i*)

and replace constraint (1e) by

pbatti,t =

1

η+i

p+i,t − η

−i p−i,t . (1e*)

Hence, the original non-convex problem in (1) is equivalentto

P′ : minpi,t,p+i,t,p−i,t,pbatt

i,t,Ei,t

T∑t=1

N∑i=1

Ci(pi,t), (6)

subject to (1b), (1c), (1d), (1e*), (1f), (1g), (1h), and (1i*). Itshould be noted that we can express some decision variables asfunctions of other decision variables using some equality con-straints, and eliminate the decision variables and constraintsfrom P′. Nevertheless, herein, we keep all the constraintsbecause each of them has its own physical meaning, and listall the decision variables to differentiate them from parametersin the optimization problem.

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Since a physical storage device cannot be charged anddischarged at the same time, we need to ensure that eitherp+i,t or p−i,t needs to be zero, i.e.,

p+i,t p−i,t = 0, ∀t ∈ T , ∀i ∈M. (7)

However, when η+i or η−i is strictly less that 1, there is no

need to add (7) to P′, because the optimal solution of P′automatically satisfies (7) as shown in the following theorem.

Theorem 1: Any solution with a pair of p+i,t and p−i,t to be

nonzero cannot be an optimal solution of P′ when η+i η−i < 1.

Proof : We prove this theorem by contradiction. Suppose pi is an optimal solution of (6), in which there exist a period t1and a storage i1 ∈M such that

p+i1,t1 p−i1,t16= 0 .

According to (1e*), we have

pbatti1,t1 =

1

η+i1

p+i1,t1 − η−i1p−i1,t1 . (8)

Let p†i be another set of variables where operations of allgenerators and storages are the same as those in pi for allthe periods except t1, as expressed in (9)

p†i,t = pi,t, ∀t ∈ T \ t1. (9)

In addition, for time t1, let i2 be the index of a generator whosepower output can be reduced without violating the rampingconstraints or its lower bound. In the unlikely scenario thatsuch i2 does not exist, we can use the extra energy whichis wasted at time t1 earlier at some time t2 to reduce oneof the generators and therefore the associated cost and usea storage device to carry energy over unless there is sometime t2 ≤ t3 ≤ t1 where the storage device is completelyempty. If that is not possible we can use the energy at somelater time t4 to reduce one of the generators and thereforethe associated cost and use a storage device to carry energyover unless there is some time t1 ≤ t5 ≤ t4 where thestorage device is completely full. We note that the only waythe above fails if there exists some interval [t3, t5] where wecannot reduce any generator while at the same time the storagedevices are filled from completely empty to completely full. Inorder words, there exists some t, when pi,t = pmin

i for ∀i ∈ Nand pi,t < 0 (charging) for ∀i ∈M. To ensure the feasibilityof the problem, constraint (1b) must be met. Hence, we haveDt =

∑N+Mi=1 pi,t <

∑Ni=1 p

mini , which contradicts to (3).

Let us return to the original case where we can reduce oneof the generators at time t1. Next, we choose the variables forall generators except i2 and all storages except i1 to be thesame as those in pi , as expressed in (10)

p†i,t1 = pi,t1 , ∀i ∈ L \ i1, i2. (10)

For storage i1, we set

p†+i1,t1 = p+i1,t1 − η+i1η−i1ε and p†−i1,t1 = p−i1,t1 − ε . (11)

where ε is an arbitrarily small positive constant. Therefore,

p†i1,t1 = p†+i1,t1 − p†−i1,t1

= (p+i1,t1 − p−i1,t1

) + ε(1− η+i1η−i1)

= pi1,t1 + ε(1− η+i1η−i1). (12)

For generator i2, we set

p†i2,t1 = pi2,t1 − ε(1− η+i1η−i1). (13)

Note that it follows from (1e*), (11) and (8) that

p†batti1,t1

=1

η+i1

p†+i1,t1 − η−i1p†−i1,t1

=1

η+i1

p+i1,t1 − η−i1p−i1,t1

= pbatti1,t1 .

Thus, p†i satisfies all the constraints in (6) and is a feasiblesolution.

Since Ci2(·) is strictly convex,

Ci2(p†i2,t1) < Ci2(pi2,t1) . (14)

This together with (9) and (10) impliesT∑t=1

N∑i=1

Ci(p†i,t) <

T∑t=1

N∑i=1

Ci(pi,t) ,

which contradicts with our assumption that pi is an optimalsolution of (6).

Let ΩM,i be the set of all p+i , p

−i ∈ RT for which (1e*),

(1f)–(1h), and (1i*) are satisfied, where i ∈M,

p+i =

(p+i,1, p

+i,2, . . . , p

+i,T

)′and

p−i =(p−i,1, p

−i,2, . . . , p

−i,T

)′.

We also denote ΩN ,i as the set of all pi ∈ RT for which (1c)and (1d) are satisfied, where i ∈ N and

pi =(pi,1, pi,2, . . . , pi,T

)′.

It is clear that both ΩM,i and ΩN ,i are convex polytopes sinceall constraints are linear.

IV. DISTRIBUTED COORDINATION APPROACH

In this section, we first propose a fully distributed algorithmto solve the modified equivalent problem P′. It is shown thatthe proposed algorithm with appropriately chosen parametersis convergent. We then show that the algorithm can be simpli-fied for the case with a single storage device.

In problem P′, both sets ΩN ,i and ΩM,i are convex poly-topes which contain local constraints for generators and stor-age devices, respectively. In addition, the local cost function∑Tt=1 Ci(pi,t) which needs to be minimized is also convex.

Motivated by the recent development in the area of distributedoptimization in [26]–[28], we can thus solve these N + Moptimization problems locally via a Lagrangian method withonly power balance constraint (1b), i.e., each node runs thelocal optimization with an estimate of the optimal dual variableλi, which is the marginal cost of bus i. These estimatesare updated using the consensus and gradient strategy: i) theconsensus part ensures that all estimates (consensus variablesλi) asymptotically approach the same value based on onlylocal information exchange, because it is necessary for an

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Algorithm 1 Multiple storage devices–Part I1: Initialize k = 0 and λi(0) = 0 ∈ RT for ∀ i ∈ L.2: repeat3: procedure LOCAL OPTIMIZATION4: for each node i = 1, . . . , N do

5: pi(k) = arg minpi∈ΩN ,i

T∑t=1

Ci(pi,t)− λi(k)′pi

6: end for7: for each node i = N + 1, . . . , N +M do8: p+

i (k), p−i (k) = arg minp+i ,p

−i ∈ΩM,i

λi(k)′(p−i − p

+i

)9: pi(k) = p+

i (k)− p−i (k)10: end for11: end procedure12: procedure CONSENSUS AND GRADIENT13: for each node i = 1, . . . , N +M do14: λi(k + 1)

15: = λi(k)− βN+M∑v=1

`ivλv(k)︸ ︷︷ ︸consensus part

−αk(pi(k)−Di

)︸ ︷︷ ︸gradient part

16: end for17: end procedure18: k = k + 119: until Error small enough20: for each node i = 1, . . . , N do21: psol

i = pi(k − 1)22: end for

optimal solution to have the same marginal cost; ii) thegradient part guarantees that the power balance is satisfied.The iterations of these two procedures yield the optimal dualvariable. This naturally leads to Algorithm 1 and 2, whereαk, β are weight parameters, λi =

(λi,1, . . . , λi,T

)′, Di =(

Di1, . . . , D

iT

)′for i ∈ L, psol

i is the final solution obtainedfrom the algorithm. These algorithms terminate when the erroris small enough, in the sense that ‖λi(k) − λi(k − 1)‖ < ε1and maxi,j∈V ‖λi(k) − λj(k)‖ < ε2, where ε1 and ε2 aresmall constants depending on the desired accuracy. In order toimplement Algorithm 1 and 2, each generator or storage agenti needs to be aware of part of the load Di

t for t = 1, . . . , Tsuch that

∑N+Mi=1 Di

t = Dt.Remark 1: Since the objective function in (6) is strictly

convex with respect to the power of each DG, the powerof DG is uniquely determined according to Algorithm 1.However, the objective function is only convex but not strictlyconvex with respect to power of each ES. Thus in general theoptimal solution for storage may not be unique. Our proposedAlgorithm 2 is able to find one of the optimal solutions.

We next present our main result which shows that Algo-rithm 1 and 2 with properly chosen parameters solve the DERcoordination problem. The proof of this theorem is rathertechnical and will be presented in Appendix A.

Theorem 2: Algorithm 1 and 2 solve the optimizationproblem (6) if

0 < β <2

µN+M(15)

Algorithm 2 Multiple storage devices–Part II1: Initialize m = 0 and λi(0) = 0 for ∀i ∈ L.2: repeat3: procedure LOCAL OPTIMIZATION4: for each node i = 1, . . . , N do5: pi(m) = psol

i

6: end for7: for each node i = N + 1, . . . , N +M do8: p+

i (m), p−i (m)9: = arg min

p+i ,p−i ∈ΩM,i

‖p+i − p

−i ‖

2 − λi(m)′(p+i − p

−i

)10: pi(m) = p+

i (m)− p−i (m)11: end for12: end procedure13: procedure CONSENSUS AND GRADIENT14: for each node i = 1, . . . , N +M do15: λi(m+ 1)

16: = λi(m)− βN+M∑v=1

`ivλv(m)︸ ︷︷ ︸consensus part

−αm(pi(m)−Di

)︸ ︷︷ ︸gradient part

17: end for18: end procedure19: m = m+ 120: until Error small enough21: for each node i = N + 1, . . . , N +M do22: psol

i = pi(m− 1)23: end for

where µN+M is the largest eigenvalue of the Laplacian matrixL and αk > 0 is a decreasing sequence such that

∞∑k=0

αk =∞,∞∑k=0

α2k <∞. (16)

In particular, Algorithm 1 yields

limk→∞

pi(k) = p∗i , ∀i ∈ N

and Algorithm 2 yields

limm→∞

pi(m) = p∗i , ∀i ∈M

provided that psoli = p∗i for all i ∈ N , where p∗i for all i ∈ L

is the centralized optimal solution of the optimization problem(6).

Remark 2: The typical choice for a sequence αk satisfying(16) is

αk =a

k + b,

where a > 0 and b ≥ 0.

A. Special Case with Single Storage

In the case of a single storage device at node N + 1, theuniqueness of p∗N+1 actually follows much easier from thepower balance constraint (1b). In order to solve the optimalcoordination for this case, we therefore replace Algorithm 2with a simplified Algorithm 3. The procedures in Algorithm 1remain the same.

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Algorithm 3 Single storage device–Part II1: procedure INITIALIZATION2: for each node i = 1, . . . , N do3: vi(0) = (N + 1)(Di − psol

i )4: end for5: vN+1(0) = (N + 1)DN+1

6: m = 07: end procedure8: repeat9: for each node i = 1, . . . , N + 1 do

10: vi(m+ 1) = vi(m)− βN+1∑j=1

`ijvj(m)

11: end for12: m = m+ 113: until Error small enough14: psol

N+1 = vN+1(m− 1)

Corollary 1: In case of single storage device, if the pa-rameters β and αk are chosen as those given in Theorem 2,Algorithm 1 and 3 solve the optimization problem (6).

Proof : As shown in the proof of Theorem 2, runningAlgorithm 1 yields

limk→∞

‖pi(k)− p∗i ‖ = 0, ∀i ∈ N .

It thus remains to show that Algorithm 3 yields

limm→∞

‖vN+1(m)− p∗N+1‖ = 0. (17)

We first note that according to the consensus theory [29], [30]

limm→∞

vN+1(m) =1

N + 1

N+1∑i=1

vi(0)

= DN+1 +

N∑i=1

(Di − psol

i

).

This together with the fact that psoli = pi(k − 1) → p∗i as

k → ∞ and that the optimal solution satisfies the balanceequation (1b) yields the required result (17).

V. CASE STUDIES

In this section, a case study is presented in order to illustrateand validate the proposed algorithms. Due to space limitations,we only present the results for multi-storage case. The IEEE6-bus system shown in Fig. 1 is used as a test system, whereBuses 1–4 are connected with distributed generators and Bus 5and 6 are connected to energy storage devices. The parametersof DGs and ESs are adopted from [31], [32], as listed inTable I, and Table II, respectively. In this example, thetopology of the communication network is assumed to be thesame as the physical system. In general, the communicationand physical layers do not necessarily have the same topology,and the only requirement on the communication network isthat its associated graph must be connected. Herein, all edgeweights aij are set to be equal to 1. These values are used to

6

23

5

S

a36

a24a35

a12a23

1

G

G

GS

4

G

a45

a16

Fig. 1. IEEE six-bus power system.

TABLE IGENERATOR PARAMETERS

Bus ai (kW2h) bi ($/kWh) ci ($/h) Range (kW)1 0.00024 0.0267 0.38 [30,60]2 0.00052 0.0152 0.65 [20,60]3 0.00042 0.0185 0.4 [50,200]4 0.00031 0.0297 0.3 [20,140]

TABLE IISTORAGE PARAMETERS

Bus Es (kWh) pmin (kW) pmax (kW) η+ η−5 500 -50 50 0.8 0.86 400 -40 40 0.88 0.88

0 2 4 6 8 10 12 14 16 18 20 22 24150

200

250

300

350

400

Hour of day

kW

Native load (w/o storage)

Net load (w/ storage)

Fig. 2. Native load vs. Net load.

determine `ij of the Laplacian matrix used in Algorithm 1 and2. Note that the convergence speed of the algorithm partiallydepends on β and αk.

The demand to be supplied by these DERs is plotted in redin Fig. 2. We have applied Algorithm 1 and 2 to coordinatefour DGs with two storages over a 24-hour period. It wasfound that the obtained solution agrees with the centralizedone. The resulting net load (load minus storage) is plotted inblue in Fig. 2. The power output and state of charge (SOC)for both storages are provided in Fig. 3.

As can be seen, two storage devices are coordinated tocut the peak and fill the valley, i.e., they are dischargedduring peak hours when the energy price is high and chargedduring off-peak hours when energy price is low. For each

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0 2 4 6 8 10 12 14 16 18 20 22 24−50

−25

0

25

50C

ha

rgin

g/d

isch

arg

ing

po

we

r (k

W)

Hour of day0 2 4 6 8 10 12 14 16 18 20 22 24

0

0.25

0.5

0.75

1

Sta

te o

f ch

arg

e

(a) Battery 1

0 2 4 6 8 10 12 14 16 18 20 22 24−50

−25

0

25

50

Ch

arg

ing

/dis

ch

arg

ing

po

we

r (k

W)

Hour of day0 2 4 6 8 10 12 14 16 18 20 22 24

0

0.25

0.5

0.75

1

Sta

te o

f ch

arg

e

(b) Battery 2

Fig. 3. Charging (negative) and discharging (positive) power and state ofcharge.

0 2 4 6 8 10 12 14 16 18 20 22 240

50

100

150

200

250

300

350

400

Hour of day

kW

Gen. 1

Gen. 2

Gen. 3

Gen. 4

Fig. 4. Generations from DGs.

storage device, SOC is the same at the beginning and endof the scheduling period, but the total charging energy (areabetween the negative blue curve and x-axis) is more thanthe discharging energy (area between the positive blue curveand x-axis) because of losses. The storage devices are idlewhen the energy price is not high (or low) enough to makethe discharging (or charging) profitable considering the round-trip efficiency. In other words, the generator output levels arenot increased (or decreased) to charge (or discharge) storagebecause cycling energy using storage in these hours is notefficient due to energy losses. Storage 1 is idle all the timeexcept Hour 3-5 and 14-15 because of its low efficiency, whileStorage 2 is engaged more often due to its higher efficiency.

The coordination of DGs is visualized in Fig. 4. In particu-

lar, Generator 1 is at its upper bound of the power output all thetime because it is the cheapest among all DGs and thereforegenerates as much as possible. Generator 2 is at its maximaloutput from Hour 9 to Hour 20 of the day. The remainingnet load is supported by Generator 3 and 4. In each hour, themarginal costs are the same for all DGs. It is not difficult tosee that the top boundary of red area in Fig. 4 matches theblue curve in Fig. 2, which means the total generation fromall generators is equal to the net load.

VI. CONCLUSIONS

This paper considered the optimal coordination problem ofDERs, including distributed generators and energy storage de-vices. Storage charging/discharging efficiencies were explicitlymodeled. In addition, the cost of energy and power dischargedfrom storage is captured through power balance constraintsand efficiencies. We first showed that the DER coordinationproblem can be modified to an equivalent problem that isconvex. For this modified problem, we then proposed fullydistributed algorithms based on the consensus and gradientstrategy for multiple/single storages. We showed that the pro-posed algorithms with properly chosen parameters convergeto the centralized solution. The proposed algorithms havebeen illustrated and validated by case studies. An interestingdirection is to extend the proposed algorithms to the opti-mal coordination problem including other types of flexibleresources, such as thermostatically controlled loads, plug-inelectric vehicles, and deferrable loads.

APPENDIX APROOF OF THEOREM 2

We first define the average process

λ(k) = 1N+M

N+M∑i=1

λi(k). (18)

It then follows from the update for λi(k) and the property ofthe Laplacian matrix that λ(k) satisfies

λ(k + 1) = λ(k)− αk

N+M r(k), (19)

where

r(k) =

N+M∑i=1

pi(k)−D, (20)

with D =(D1, . . . , DT

)′.

Next define

λe(k) =(λ1(k)− λ(k), . . . , λN+M (k)− λ(k)

)′. (21)

It is easy to show that λe(k) satisfies

λe(k + 1) = (I − β(L⊗ IT ))λe(k)− αkr(k), (22)

where

r(k) =

p1(k)−D1 − 1N+M r(k)

...pN+M (k)−DN+M − 1

N+M r(k)

. (23)

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8

Since (15) is satisfied, the matrix W = I − β(L⊗ IT ) has Teigenvalues in 1, which are maximal in modulus. Moreover,the corresponding eigenvectors are xi = 1 ⊗ ei, where 1 isa vector in RN+M consisting of only ones while ei denotesthe i’th basis vector in RT . Note that it follows from (20) and(23) that x′ir(k) = 0 for all i ∈ L and all k. Therefore,

‖W jr(k)‖ ≤ µj‖r(k)‖, (24)

whereµ = max

i |µi| | µi 6= 1

while µ1, . . . , µN+M are the eigenvalues of W .Since the constraints (1d) are satisfied, we know that there

exists M1 such that ‖r(k)‖ < M1 for all k. Note that it followsfrom λi(0) = 0 that λe(0) = 0. Thus from (22), we have

λe(k) = −k−1∑j=0

αjWk−j−1r(j) (25)

and therefore

αk‖λe(k)‖ ≤M1

k−1∑j=0

αkαj µk−j−1. (26)

It then follows from (16) that∞∑k=0

αk‖λe(k)‖ <∞. (27)

We now proceed our analysis by considering two cases. Weshow that Case 1 will lead to a contradiction while Case 2will yield the required convergence to the optimal value.• Case 1: We have that

∑N+Mi=1 pi(k) is bounded away from

D. In that case choose λ∗ to be the optimal dual variablefor the problem.

• Case 2: If λ(k), p1(k), . . . , pN+M (k) has a conver-gent subsequence with limit λ∗, p∗1, . . . , p

∗N+M such that∑N+M

i=1 p∗i = D.Note that we have

p∗i = arg minpi∈ΩN ,i

T∑t=1

Ci(pi,t)− (λ∗)′pi (28)

for distributed generator i ∈ N while for storage i ∈M,

(p∗+i , p∗−i ) ∈ arg minp+i ,p

−i ∈ΩM,i

(λ∗)′(p−i − p

+i

)(29)

where p∗+i − p∗−i = p∗i . Because of lack of strict convexity,

p∗+i and p∗−i are solutions of the above optimization problembut are in general not uniquely determined (in case of a singlestorage device, uniqueness follows from the power balanceequation (1b)).

Since p∗i ∈ ΩN ,i for i = 1, . . . , T , we conclude that

(2aip∗i + bi − λ∗)′ (pi(k)− p∗i ) ≥ 0 (30)

for i = 1, . . . , N while

− λ∗ (pi(k)− p∗i ) ≥ 0 (31)

for i = N+1, . . . N+M . Here we have used the standard factthat if x∗ is the minimizer of some convex function F (x) over

a convex set X , and F (·) is differentiable, then ∇F (x∗)′(x−x∗) ≥ 0 for all x ∈ X , where ∇F is the gradient of F , see,e.g., [33, Proposition 3.1].

Recall that

pi(k) = arg minpi∈ΩN ,i

T∑t=1

Ci(pi,t)− λi(k)′pi

for i = 1, . . . N and

(p+i (k), p−i (k)) ∈ arg min

p+i ,p−i ∈ΩM,i

λi(k)′(p−i − p

+i

)for i = N+1, . . . N+M . Since pi(k) ∈ ΩN ,i for i = 1, . . . , T ,applying the similar analysis as for obtaining (30) and (31)yields

(2aipi + bi − λi(k))′(p∗i − pi(k)) ≥ 0 (32)

for i = 1, . . . , N while

− λi(k)′ (p∗i − pi(k)) ≥ 0 (33)

for i = N + 1, . . . N + M . By adding (30) with (32) and byadding (31) with (33) respectively, we obtain that

2ai‖pi(k)− p∗i ‖2 ≤ (λi(k)− λ∗)′ (pi(k)− p∗i ) (34)

for distributed generator i ∈ N , and

0 ≤ (λi(k)− λ∗)′ (pi(k)− p∗i ) (35)

for the storage device i ∈M.Summing (34) and (35) yields

N∑i=1

2ai‖pi(k)−p∗i ‖2 ≤N+M∑i=1

(λi(k)−λ∗)′(pi(k)−p∗i ). (36)

Note that in Case 1 we considered the optimal solutionwhich clearly satisfies the power balance, while In Case 2by construction p∗i satisfies the power balance. It then followsfrom (20) that

r(k) =

N+M∑i=1

(pi(k)− p∗i ) . (37)

With some algebra, we get

‖λ(k + 1)− λ∗‖2 − ‖λ(k)− λ∗‖2

= 2(λ(k)− λ∗

)′ (λ(k + 1)− λ(k)

)+ ‖λ(k + 1)− λ(k)‖2

=−2αkN +M

(λ(k)− λ∗

)′r(k) +

α2k‖r(k)‖2

(N +M)2

=−2αkN +M

N+M∑i=1

(λ(k)− λ∗

)′(pi(k)− p∗i ) +

α2k‖r(k)‖2

(N +M)2

=−2αkN +M

N+M∑i=1

(λ(k)− λi(k)

)′(pi(k)− p∗i )

− 2αkN +M

N+M∑i=1

(λi(k)− λ∗)′ (pi(k)− p∗i ) +α2k‖r(k)‖2

(N +M)2,

where we have used (19) in the second equality and (37) inthe third equality.

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9

By using (21) and (36), we get

‖λ(k + 1)− λ∗‖2 − ‖λ(k)− λ∗‖2

≤ αk‖λe(k)‖M3 −4αk

N +M

N∑i=1

ai‖pi(k)− p∗i ‖2 + α2kM4,

where M3 is such that ‖pi(k) − p∗i ‖ ≤ M3

2 (N + M) for alli ∈ L and M4 is such that ‖r(k)‖2 ≤M4(N +M)2.

In Case 1 we note there exists δ such thatN∑i=1

ai‖pi(k)− p∗i ‖2 ≥ δ

since p∗i satisfies the power balance and pi(k) is by assumptionnever close to satisfying the power balance. This yields that

uk =4αk

N +M

N∑i=1

ai‖pi(k)− p∗i ‖2 (38)

is a divergent sequence, while∞∑k=0

αk‖λe(k)‖M3 <∞ and∞∑k=0

α2kM4 <∞.

This leads to a contradiction according to the deterministiccounterpart of the supermartingale convergence result, whichcan be found in [34, Lemma 6] and is presented as Lemma 1in Appendix B for readers’ convenience.

Hence we only need to consider Case 2. Using the deter-ministic counterpart of the supermartingale convergence resultin Lemma 1, it follows that the sequence ‖λ(k) − λ∗‖2 is convergent. In particular, this result is obtained by applyingthe result of Lemma 1 with

v(k) = ‖λ(k)− λ∗‖2, b(k) = 0,

c(k) = αk‖λe(k)‖M3 + α2kM4.

and u(k) as in (38). Since the sequence λ(k) has a sub-sequence that converges to λ∗, we can then conclude that itmust converge to λ∗.

Note that from (34), by using the Cauchy-Schwarz inequal-ity, we obtain

2ai‖pi(k)− p∗i ‖2 ≤ ‖λi(k)− λ(k) + λ(k)−λ∗‖‖pi(k)− p∗i ‖.

Since ‖pi(k) − p∗i ‖ ≤ M3

2 (N + M), which is bounded, andlimk→∞ λ(k) = λ∗, we have

limk→∞

‖pi(k)− p∗i ‖ ≤ C limk→∞

‖λi(k)− λ(k)‖.

for some constant C > 0. The right hand side of the aboveinequality is actually zero due to (21), (25), (24) and thefact that αk is decreasing and converging to zero. Hence, weconclude that

limk→∞

‖pi(k)− p∗i ‖ = 0, ∀i ∈ N .

It remains to show that the power of storage devicesconverges to the correct value. In the case of multiple storagedevices, we only need to find a feasible solution since thestorage devices do not affect the cost function. To find a

feasible solution, we solve the following convex optimizationproblem:

P′s : minp+i,t,p

−i,t

T∑t=1

N+M∑i=N+1

(p+i,t − p

−i,t)

2 (39)

subject to (1i*), (1b), (1e*), (1f), (1g) and (1h) with pi,t = psoli

for i ∈ N and t ∈ T . Note that the cost function of optimiza-tion problem (39) is irrelevant since we are only looking fora feasible solution. The cost function is only helpful in thesense that it guarantees that we have a way to select a uniquesolution from the set of all feasible solutions. We can thenfollow the first part of proof with some modifications to showthat limm→∞ ‖pi(m)− p∗i ‖ = 0 for all i ∈M.

APPENDIX BDETERMINISTIC COUNTERPART OF SUPERMARTINGALE

CONVERGENCE THEOREM

Lemma 1: Let the sequence v(k) be a non-negative scalarsequence such that

v(k + 1) ≤ (1 + b(k))v(k)− u(k) + c(k) for all k ≥ 0,

where b(k) ≥ 0, u(k) ≥ 0 and c(k) ≥ 0 for all k ≥ 0 with∑∞k=0 b(k) < ∞, and

∑∞k=0 c(k) < ∞. Then, the sequence

v(k) converges to some v ≥ 0 and∑∞k=0 u(k) <∞.

ACKNOWLEDGEMENT

The authors greatly acknowledge the anonymous reviewersfor their comments which improve the quality of this paper.

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Di Wu (M’12) received the B.S. and M.S. degreesin electrical engineering from Shanghai Jiao TongUniversity in 2003 and 2006, respectively, and thePh.D. degree in electrical and computer engineeringfrom Iowa State University, Ames, in 2012.

Dr. Wu is currently a senior power system engi-neer in the Electricity Infrastructure group at PacificNorthwest National Laboratory (PNNL). He servesas an Associate Editor for the IEEE Power andEnergy Technology Systems Journal. His researchinterests include distributed control and coordination

in power systems, operational planning and optimization of energy storage,and power system dynamic simulation. Before joining PNNL, his researchmainly focuses on the impacts of plug-in electric vehicles on power systemsand planning of national energy and transportation infrastructure.

Tao Yang (M’12) received the B.S. degree in Com-puter Science from Harbin University of Science andTechnology in 2003, the M.S. degree with distinctionin control engineering from City University, Londonin 2004, and the Ph.D. degree in electrical engineer-ing from Washington State University in 2012. Be-tween August 2012 and August 2014, he was an AC-CESS Post-Doctoral Researcher with the ACCESSLinnaeus Centre, Royal Institute of Technology,Sweden. He is currently an Assistant Professor at theDepartment of Electrical Engineering, University of

North Texas (UNT). Prior to joining the UNT, he was a Scientist/EngineerII with Energy & Environmental Directorate, Pacific Northwest NationalLaboratory. His research interests include distributed control and optimizationin power systems, Cyber Physical Systems, networked control systems, andmulti-agent systems. He is a member of the IEEE Control Systems SocietyTechnical Committee on Smart Grids, Technical Committee on Networks andCommunication Systems, and Technical Committee on Nonlinear Systemsand Control.

Anton A. Stoorvogel received the M.Sc. degree inMathematics from Leiden University in 1987 andthe Ph.D. degree in Mathematics from EindhovenUniversity of Technology, the Netherlands in 1990.Currently, he is a professor in systems and controltheory at the University of Twente, the Netherlands.He has been associated in the past with EindhovenUniversity of Technology and Delft University ofTechnology as a full professor. In 1991 he visited theUniversity of Michigan. From 1991 till 1996 he wasa researcher of the Royal Netherlands Academy of

Sciences. Anton Stoorvogel is the author of five books and numerous articles.He is and has been on the editorial board of several journals.

Jakob Stoustrup (M’87, SM’99) has received M.Sc.(EE, 1987) and Ph.D. (Applied Mathematics, 1991)degrees, both from the Technical University ofDenmark. From 1991-1996, Stoustrup held severalpositions at Department of Mathematics, TechnicalUniversity of Denmark. Visiting Professor at theUniversity of Strathclyde, Glasgow, U.K., and at theMittag-Leffler Institute, Stockholm, Sweden. From2006-2013 he acted as Head of Research for theDepartment of Electronic Systems, Aalborg Univer-sity. From 2014-2016, Stoustrup was Chief Scientist

at Pacific Northwest National Laboratory, WA, USA, leading the Control ofComplex Systems Initiative for US Department of Energy. From 1997-2013and since 2016, Dr. Stoustrup has acted as Professor at Automation & Control,Aalborg University, Denmark.