Optimal decentralised dispatch of embedded generation in the smart grid

Distribution network operators face a number of challenges; capacity constrained networks, and balancing electricity demand with generation from intermittent renewable resources. Thus, there is an increasing need for scalable approaches to facilitate optimal dispatch in the distribution network. To this end, we cast the optimal dispatch problem as a decentralised agent-based coordination problem and formalise it as a DCOP. We show how this can be decomposed as a factor graph and solved in a decentralised manner using algorithms based on the generalised distributive law; in particular, the max-sum algorithm. We go on to show that max-sum applied näıvely in this setting performs a large number of redundant computations. To address this issue, we present a novel decentralised message passing algorithm using dynamic programming that outperforms max-sum by pruning the search space. We empirically evaluate our algorithm using real distribution network data, showing that it outperforms (in terms of computational time and total size of messages sent) both a centralised approach, which uses IBM’s ILOG CPLEX 12.2, and max-sum, for large networks.