Decentralized Demand Optimization Using Real-time Pricing Strategy and Chattering Phenomena

Abstract

This paper considers decentralized demand optimization of the mixed continuous/discrete-valued output power equipment. Each power consumption equipment determines own set-point as a solution to the individual optimization problem. We investigate the real-time pricing strategy to align the individual decision making and the optimal solution that satisfies the power flow balance constraint. The proposed decentralized management methodology may not work and, due to the existence of discrete-valued output power equipment, the resulting time response may cause chattering phenomena. We investigate two modifications in the proposed decentralized management methodology which mitigate the chattering phenomena. The one refines the cost function for the continuous-valued output power equipment. The other switches the operating conditions of discrete-valued output power equipment. The numerical case studies show the effectiveness of proposed decentralized management methodology.