Data-Driven Distributed Energy Management in Interconnected Smart Grids/Microgrids: A Critical Review of ADMM and Related Optimization Algorithms

Microgrids are increasingly recognized as transformative and crucial constituents within advanced smart grid systems. This study introduces a decentralized energy management approach for interconnected microgrids that leverage renewable energy sources such as wind and solar, alongside distributed energy generators and storage mechanisms. An energy coalition manager (ECM) plays a key role in facilitating each microgrid’s integration to optimize power exchanges, enhance data communication, and reduce costs. The alternate-direction multiplier method is adapted to address optimization challenges, incorporating modifications to develop a censored version that enhances communication efficacy. This refined approach involves the exchange of information among neighboring entities, evaluated against a preset threshold. Through this precise comparison, ECMs strategically reveal their local variables to ensure convergence towards an optimal solution. A detailed case study was conducted to assess the performance, efficiency, and scalability of both methodologies comprehensively.