A Distributed Paradigm for Power Loss Reduction in Micro-Grids

Abstract

In the earlier two chapters, we showed that in order to enhance the efficiency of the smart grid in terms of power loss reduction, the micro grids can exchange power with other micro grids instead of the macro station. If the micro grids have more than one neighbor, which neighbor can be chosen as the most appropriate partner for building the power loss reducing coalition is a key challenge [1, 2]. The coalition formation approaches in the earlier chapters are actually subject to central decision making. In other words, the micro grids have to take their problem up to the control center of the macro station which evaluates all the parameters and then makes optimal decisions pertaining to micro grids’ coalition formation. Then, the control center has to send the decision back to the micro grids. This means that the micro grids have to go back and forth with the control center since it is the only entity which has the global information (e.g., which micro grids have energy shortage and by how much, which micro grids have surplus power and how much they can sell in the next hour, etc.). In this chapter, we discuss a distributed decision making approach to suit the physically distributed micro grids to allow them to make autonomous decisions regarding energy transfer and coalition formation. The distributed decision making may not be optimal as the centralized version. But it may save precious time for the micro grids to take prompt decisions rather than relying on the centralized entity to make decisions on their behalf. The adopted approach is essentially different from other existing decentralized algorithms like [3, 4] in terms of its objective to minimize the power losses.