Distributed Energy Management for Distribution Networks with Multi-stakerholder Power Sources and Loads

Distribution networks can receive diversified energy and then deliver them to customers, which facilitates the development of multi-stakeholder power sources and loads. In order to ensure the stability of power system operation, optimal energy management for distribution networks is a significant and challenging problem considering power sources and loads belonging to separate entities. Many existing works focused on the economic benefits of distribution networks without consideration of the privacy and independent decisions of stakeholders. In this paper, a distributed hierarchical energy management method is proposed to minimize costs of all stakeholders simultaneously. A bi-level nonlinear programming model is proposed to characterize the energy production and trading processes between distribution networks and multi-stakeholder power sources and loads. Then, a Lagrangian relaxation based computing algorithm is applied to solve the proposed model in a distributed manner. Finally, the proposed energy management approach is verified in the actual operating case in Shandong power grid, China. It is proved to be an effective method for the energy management of distribution networks with multi-stakeholder power sources and loads.