Distributed Minimization of the Power Generation Cost in Prosumer-Based Distribution Networks

Traditionally, electrical power was generated in big power plants. The cost of producing energy was related to the cost of fuel, e.g., carbon or gas, and by the cost of maintaining the power plants. With the advent of distributed energy resources, power can be produced directly at the edge of the electrical network by a new type of agent: the prosumer. Prosumers are entities that both consume and generate power, e.g., by means of photovoltaic panels. The cost of the power produced by prosumers is no longer related to fuel consumption since energy coming from distributed generators is essentially free. Rather, the cost is related to the remuneration that is due to the prosumers for the services they provide. The proposed control strategy minimizes the active power generation cost in the aforementioned scenario. The control scheme requires that the prosumers measure their voltage and then adjust the amount of injected power, according to a continuous time feedback control law that is a projected gradient descent strategy. Simulations are provided to illustrate the algorithm behavior.