A price mechanism for supply demand matching in local grid of households with micro-CHP

This paper describes a dynamic price mechanism to coordinate eletric power generation from micro Combined Heat and Power (micro-CHP) systems in a network of households. It is assumed that the households are prosumers, i.e. both producers and consumers of electricity. The control is done on household level in a completely distributed manner. Avoiding a centralized controller both eases computation complexity and preserves communication structure in the network. Local information is used to decide to turn on or off the micro-CHP, but through price signals between the prosumers the network as a whole operates in a cooperative way.