Efficient distributed OPF for decentralized power system operations and electricity markets

This paper explores the feasibility of fully-distributed architectures for the electric power industry. In such architectures, the various electric power ecosystems interact with each other to achieve their own operational and economic objectives without the need for real-time centralized coordination or optimization. This paper uses an efficient distributed optimal power flow algorithm which is applicable to generic power ecosystem optimization, and it describes the ecosystem interaction protocols for operation and trading. The proposed algorithm is illustrated in detail for a small case, and performance results are provided for a large, realistic-size case. The results provided demonstrate the feasibility of such a distributed architecture that can ultimately scale from interconnections to homes.