A Distributed Dynamic Programming-based Solution for Load Management in Smart Grids

Load management is being recognized as an important option for active user participation in the energy market. Traditional load management methods usually require a centralized powerful control center and a two-way communication network between the system operators and energy end-users. The increasing user participation in smart grids may limit their applications. In this paper, a distributed solution for load management in emerging smart grids is proposed. The load management problem is formulated as a constrained optimization problem aiming at maximizing the overall utility of users while meeting the requirement for load reduction requested by the system operator, and is solved by using a distributed dynamic programming algorithm. The algorithm is implemented via a distributed framework and thus can deliver a highly desired distributed solution. It avoids the required use of a centralized coordinator or control center, and can achieve satisfactory outcomes for load management. Simulation results with various test systems demonstrate its effectiveness.