Optimal Energy Management in Combined Heat and Power System via A Decentralized Consensus-Based ADMM

Abstract This paper proposes a comprehensive optimization model that considers not only the economic dispatch (ED) of the combined heat and power (CHP) units, but also the demand response (DR) of consuming units in the energy management system, where each individual unit can exchange the information with its neighbours. In this optimization problem, there are energy balance constraints and individual local constraints. Particularly, the progresses of the power dispatch and the heat dispatch of each CHP unit are coupled through a feasible polygon region constraint, and the power demands of each consumer among different periods are also coupled due to the requirement of the total power consumption. To achieve the optimal energy coordination of the underlying system, we propose a decentralized alternating direction method of multipliers (ADMM), under connected communication network of individuals, such that each CHP unit and consumer can simultaneously implement their own optimal strategies based on an agreed energy price derived by a consensus protocol. The convergence and optimality of the proposed method are guaranteed under certain conditions. Simulation results are shown to demonstrate the developed results.