With the rapidly evolving technology of the smart grid and electric vehicles (EVs), the battery has emerged as the most prominent energy storage device, attracting a significant amount of attention. The very recent discussions about the performance of lithium-ion (Li-ion) batteries in the Boeing 787 have confirmed so far that, while battery technology is growing very quickly, developing cells with higher power and energy densities, it is equally important to improve the performance of the battery management system (BMS) to make the battery a safe, reliable, and cost-efficient solution. The specific characteristics and needs of the smart grid and EVs, such as deep charge/discharge protection and accurate state-of-charge (SOC) and state-of-health (SOH) estimation, intensify the need for a more efficient BMS. The BMS should contain accurate algorithms to measure and estimate the functional status of the battery and, at the same time, be equipped with state-of-the-art mechanisms to protect the battery from hazardous and inefficient operating conditions.

In a smart grid, effective distributed control algorithms could be embedded in distributed controllers to properly allocate electrical power among connected buses autonomously. By selecting the incremental cost of each generation unit as the consensus variable, the incremental cost consensus (ICC) algorithm is able to solve the conventional centralized economic dispatch problem in a distributed manner. The mathematical formulation of the algorithm has been presented in this paper. The results of several case studies have also been presented to show that the difference between network topologies will influence the convergence rate of the ICC algorithm.

Real-time estimation of the state of charge (SOC) of the battery is a crucial need in the growing fields of plug-in hybrid electric vehicles and smart grid applications. The accuracy of the estimation algorithm directly depends on the accuracy of the model used to describe the characteristics of the battery. Considering a resistance-capacitance (RC)-equivalent circuit to model the battery dynamics, we use a piecewise linear approximation with varying coefficients to describe the inherently nonlinear relationship between the open-circuit voltage (V_OC) and the SOC of the battery. Several experimental test results on lithium (Li)-polymer batteries show that not only do the V_OC-SOC relationship coefficients vary with the SOC and charging/discharging rates but also the RC parameters vary with them as well. The moving window least squares parameter-identification technique was validated by both data obtained from a simulated battery model and experimental data. The necessity of updating the parameters is evaluated using observers with updating and nonupdating parameters. Finally, the SOC coestimation method is compared with the existing well-known SOC estimation approaches in terms of performance and accuracy of estimation.

In this paper, we introduce the incremental welfare consensus algorithm for solving the energy management problem in a smart grid environment populated with distributed generators and responsive demands. The proposed algorithm is distributed and cooperative such that it eliminates the need for a central energy-management unit, central price coordinator, or leader. The optimum energy solution is found through local peer-to-peer communications among smart devices. Each distributed generation unit is connected to a local price regulator, as is each consumer unit. In response to the price of energy proposed by the local price regulators, the power regulator on each generation/consumer unit determines the level of generation/consumption power needed to optimize the benefit of the device. The consensus-based coordination among price regulators drives the behavior of the overall system toward the global optimum, despite the greedy behavior of each unit. The primary advantages of the proposed approach are: 1) convergence to the global optimum without requiring a central controller/coordinator or leader, despite the greedy behavior at the individual level and limited communications; and 2) scalability in terms of per-node computation and communications burden.

The advanced microgrid is envisioned to be a critical part of the future smart grid because of its local intelligence, automation, interoperability, and distributed energy resources (DER) hosting capability. The enabling technology of advanced microgrids is the microgrid management system (MGMS). In this article, we discuss and review the concept of the MGMS and state-of-the-art solutions regarding centralized and distributed MGMSs in the primary, secondary, and tertiary levels, from which we observe a general tendency toward decentralization.