Date Added: May 2012
In this paper, the authors address the case where two micro-grids are isolated from the main grid but can exchange energy with each other. The goal is to minimize the total cost resulting from energy generation and transportation, while each micro-grid satisfies its local power demand. They first propose a centralized solution. In this approach, a central controller must have access to all the information. For those situations where privacy must be protected, they propose a distributed approach, in which each micro-grid solves a local optimization problem in an iterative fashion by exchanging some information with the other one.