Distributed coordination of power generation and transmission for an energy network

This paper studies a modified economic dispatch problem (EDP) of an energy network when both power generation and transmission costs are taken into account. The considered network consists of power stations and energy consuming systems connecting via transmission lines. Due to the differences in generation costs and capacities of generators and the demand of consumers, it is highly required to have an optimal coordination in power generation distribution and power transmission. By assuming the cost functions have convex quadratic forms and applying Douglas–Rachford alternating direction method of multipliers (ADMM), we design a simple iteration update for each agent (corresponding to one power generators or one energy consumer systems) to determine the optimal power generation distribution (for generator nodes) and the optimal power transmitted to its neighbors in a distributed manner. The effectiveness of the proposed method is verified via numerical simulations for a modified IEEE 30-bus test network. We also remark that it can be used to solve the traditional EDP with a small modification in problem setup.