Distributed Optimization of Energy Portfolio and Production Planning for Multiple Companies Under Resource Constraints

In this paper, we propose a distributed optimization approach to energy portfolio and production planning for multiple companies. The production planning problem for multiple companies with the selection of electricity procurement contracts under energy resource constraints is formulated as a mixed integer nonlinear programming problem. A Lagrangian decomposition and coordination technique is applied to solve the problem. The original problem is decomposed into several subproblems. Heuristics are applied to generate a feasible solution. Computational results show the proposed method can solve the problem effectively within a reasonable computation time.