Distributed auction optimization algorithm for the nonconvex economic dispatch problem based on the gossip communication mechanism

This paper presents an efficient distributed auction optimization algorithm (DAOA) based on the gossip communication mechanism for the nonconvex economic dispatch problem. The problem contains several constraints such as generation output limits, valve-point loading effects, multiple fuels, and the supply-demand balance. The gossip communication mechanism runs as two layers. The first layer triggers the leaders to conduct the local auction optimization, and the second layer is the auction protocol that selects the optimal neighbors to cooperate with the leaders to implement the auction decision. Auction optimization is a local optimization method, in which the units evaluate the bids of a certain amount of output power and the paired bid winners update their output power to reduce the generation cost. Better solutions can be obtained through gossip communication and local optimizations. Numerous simulations are conducted to demonstrate the effectiveness of the proposed strategy.