Distributed Real-Time Economic Dispatch in Smart Grids: A State-Based Potential Game Approach

In this paper, a distributed optimization algorithm based on state-based potential game (SPG) is proposed for the real-time economic dispatch (RTED) problem in smart grids. Under the DC power flow approximation, we formulate the RTED with coupled operational constraints as a centralized optimization problem (C-RTED). By treating each node in the grid as an agent, we convert the C-RTED into an SPG by augmenting its objective function in the designed game with a local augmented Lagrange-like function, leading to a distributed algorithm for solving the C-RTED problem. We reveal that the stationary-state Nash equilibrium of the SPG exactly identifies the global optimum of the constrained C-RTED problem. The proposed algorithm is capable of handling both equality and inequality constraints in complicated forms, and can be further simplified to entail lower communication burden. Simulations on the IEEE 9-, 39-, and 118-bus systems confirm that the algorithm can quickly converge to the global optimum even under unreliable communication and plug-and-play operations.