Distributed Control using Decompositions applied to a network of houses with µCHP’s

In this project a network of households which are both producersand consumers of electricity, is assumed. We investigatehow pricing mechanisms can be used to control theelectricity supply of micro Combined Heat Power (µCHP)systems to the electricity grid. Such systems produce at thesame time heat and electricity, and the generated electricpower can also be sold. The goal of the network is maximumenergy transport at the lowest cost, while the goal ofthe household will be to reduce its cost. We wish to find aprice mechanism that stimulates the household to a flat electricitydemand.