Consensus-Based Distributed Coordination Between Economic Dispatch and Demand Response

In this paper, a novel dynamic coordination problem between economic dispatch and demand response is formulated by taking the battery energy storage systems into consideration, which aims at making effective use of the power energy and mitigating the impact of the intermittency of the renewable energy resources. The formulated problem is equivalently modeled as a social welfare maximization problem, then a distributed coordination algorithm is developed by integrating the average consensus protocol and alternating direction method of multipliers. Sufficient conditions under which the developed algorithm converges are derived. It is also shown that the commonly used quadratic cost and utility functions can guarantee the convergence. The developed algorithm efficiently guarantees the electricity market equilibrium and maximizes the social welfare over each time slot. Moreover, the algorithm maintains instantaneous power balance, which eliminates the need of extra algorithms to track the power mismatch between the supply and demand sides. Finally, the performance and scalability of the proposed algorithm are verified through a set of case studies on a simplified model of the Australian power grid, in which the effects of the renewable generation and power loss are also discussed.