Distributed Optimal Control of Smart Energy Grids with Congestion Management

One of the big challenges in the transition towards smartgrids is how to deal with the intermittent nature of renewableenergy resources such as wind or solar energy. For example,a prediction of the electricity supply and demand is typicallymade a day ahead, but the actual supply during operationcan deviate from the plan since weather conditions influencethe generation. The system needs to compensate for thisdeviation and minimize the economic costs associated withit. The problem can be addressed by demand response, inwhich households with flexible appliances – devices that arecapable of moving their load in time – also play an activerole in the balancing process [1]