Dynamic Consensus-Based ADMM Strategy for Economic Dispatch with Demand Response in Power Grids

This paper introduces a dynamic consensus-based economic dispatch (ED) algorithm utilizing the Alternating Direction Method of Multipliers (ADMM) to optimize real-time pricing and generation/demand decisions within a decentralized energy management framework. The increasing complexity of modern energy markets, driven by the proliferation of Distributed Energy Resources (DER) and variable demands from hybrid electric vehicles, necessitates a departure from traditional centralized dispatch methods. This research proposes a novel ADMM-based solution tailored for non-responsive and responsive demand units that integrates demand response mechanisms to adaptively manage real-time fluctuations while enhancing security and privacy through distributed data management. The testing of the algorithm on the IEEE 39 bus system under various load conditions over 24 h demonstrated the algorithm’s effectiveness in handling traditional and renewable energy sources, particularly highlighting the economic benefits of shifting controllable loads to periods of low-cost renewable availability. The findings underscore the algorithm’s potential to reduce energy costs, enhance energy efficiency, and offer a scalable solution across diverse grid systems, contributing significantly to advancing global energy policy and sustainable management practices.