Virtual splitting of shared resource networks for pricebased coordination with portfolio tariffs

Abstract

In the process industries the optimal allocation of shared resources among physically coupled subsystems is key to an efficient operation of the overall system, e. g., an integrated production site. If the subsystems have a certain level of autonomy or it is desired to grant confidentiality to the constituent subsystems, price-based coordination can be employed, where an independent system operator (ISO) iteratively adjusts transfer prices for the shared resources until the demand and the supply match, i. e., the shared resource networks are balanced. In this contribution, a modified subgradient price update scheme is presented, which can be used for systems that are connected to external resources, such as pipelines, through which certain amounts of the resources can be exchanged at prices that are fixed in portfolio tariffs. The approach virtually splits the shared resource networks to account for the different price regimes in the available tariff. The principle is illustrated in a simulation study of a production site with three productions plants that are connected to an external distribution grid.