SBIR Phase I: Advanced microgrid control system based on decentralized optimization techniques

The broader impact/commercial potential of this Small Business Innovation Research (SBIR) Phase I project is to create a viable control system that will optimize microgrids in a decentralized manner and create additional flexibility for electric grid operators. Current microgrids' combinations of power generation, storage, and consumption that may or may not be integrated with the broader electric grid?mostly depend on a centralized dispatch approach, with one single operator making decisions regarding which assets to utilize and when. Centralized systems require large efforts to set up and do not efficiently adapt to changes in generation or consumption. The proposed technology will employ a different logic for controlling assets, automatically and continuously optimizing the dispatch decisions by using a decentralized blockchain ledger. The benefits of this control system include dramatically increased flexibility when assets are added or removed from the system, and much greater resiliency as there is no single point of failure of the system. Electric utilities will be able to leverage the system to more effectively manage the grid and deploy "virtual power plants" rather than depend on inefficient and costly "peaker" plants. Overall the technology will accelerate adoption of microgrids, improving the nation's energy infrastructure. This Small Business Innovation Research (SBIR) Phase I project seeks to design the decentralized control logic for microgrids, test it via computer simulations, and conduct a limited physical test at an active site with solar panels, batteries, and other types of energy assets. Current control systems generally utilize a rigid, centralized dispatch logic that does not automatically adapt to changing conditions. A substantial body of research has been conducted demonstrating the benefits of decentralized ledgers in controlling electric grids. The proposed research will put the theoretical foundation into practice by developing the related algorithms to be able to commercialize a microgrid control system. While the benefits of decentralized systems are clear, the complexity is also drastically increased when compared with existing centralized systems. The software must be robust enough to handle the transactions with stability and redundancy, while also simple enough to not strain telecommunications and computing resources within the system. The proposed research is expected to establish proof-of-concept dispatch logic based on a blockchain ledger, producing an effective and scalable solution that will optimize microgrid operation, nearly reaching the theoretically ideal conditions. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.