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The AC/DC hybrid microgrid is the main trend of microgrids’ development, and the dynamic economic dispatch is regarded as an important way to ensure the economic and safe operation of a microgrid system. In this paper, a dynamic economic dispatch model of the isolated AC/DC hybrid microgrid is developed with the objective of minimizing the daily operation cost of controllable units. Furthermore, a distributed algorithm based on the finite-step consensus algorithm is proposed, in which the incremental cost of each distributed generation unit is set as a consensus variable, and all units obtain the optimal values by exchanging information only with their neighbors. In addition, the algorithm converges to the optimal solutions in finite steps, and the efficiency is improved significantly. The effectiveness of the proposed model and the algorithm were verified by simulation.

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