ADMM Algorithm based Distributed Energy Management in Active Distribution Network

Abstract

Distributed energy management algorithms are remarkably efficient in resolving load variation issues and addressing a high peak to average power ratio. A distributed algorithm promotes individual participation, bilateral coordination, data privacy, and consumers’ economic benefit. This paper presents an alternating direction method of multipliers (ADMM) based distributed algorithm for energy management in a distribution network. It decomposes the centralized energy management problem into a distribution system operator (DSO) and load aggregator (LA) level sub-problems. The DSO objective is to minimize energy cost and power loss in the network, whereas LA intends to reduce its energy consumption cost. The DSO and LA optimization problems are solved independently and coordinated via a central coordinator. The algorithm is tested on a modified 15-node distribution network to substantiate its effectiveness. The simulation results are presented for flexible loads, solar PV generation, and battery energy storage systems. Also, we analyzed the impact of the penalty factor on the algorithm convergence and the network power consumption.