A distributed price-based strategy for flexible demand coordination in multi-area

Abstract

This paper presents a novel distributed control strategy for large-scale deployment of price-responsive flexible demand. Differently from previous theoretical studies on the subject, the proposed analysis explicitly models multi-area systems, accounting for transmission lines of limited capacity and different locational marginal prices (LMP) throughout the network. A game-theoretic framework is adopted, designing a demand coordination scheme that converges to a stable market configuration (characterized as an aggregative equilibrium) through iterative price broadcasts. The performance of the proposed control strategy, that also ensures flattened generation profiles and reduced generation costs, is evaluated in simulation on a five-bus power system.