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Energy production cost and PAR minimization in multi-source power networks

We study the problem of minimizing the power generation cost and peak-to-average (PAR) of sources' energy production for a network of multiple energy sources. We consider a power distribution network in which each load is connected to multiple sources and, depending on network connectivity, can be fed by more than one power source. We assume that the power generation cost changes from one power source to another. We also assume that the power generation cost for each source is a function of its load. Based on the network model and assuming the power consumption schedule for all the loads is available, we then introduce two different optimization problems to minimize the overall cost of energy production throughout the network and to minimize the PAR of sources' energy. We also introduce a hybrid optimization problem that combines the energy production cost and PAR objective functions with a proper wight. By solving these optimization problems using convex optimization techniques, we find out the best load sharing schemes that minimize the derived objective functions. In practice, each load shares its consumption schedule hourly (or daily) with the central power network administrator over a wired or wireless area network. This information can then be used to solve the formulated optimization problems. Simulation results confirm that the resulting load sharing schemes bring about significant reduction in the energy production cost as well as the PAR of the required generated energy throughout the network.