To solve the economic dispatch (ED) problem of multiple distributed generations in the microgrid, this paper proposes a fully distributed method by using the exact diffusion strategy which can achieve exact convergence under sparse communication network. Firstly, a multi-agent hierarchical control architecture for the microgrid is designed. The microgrid central controller (MGCC) agent does not act as centralized control but instead participates in the distributed optimization between the bottom layer agents. Furthermore, an economic dispatch optimization model is established which aims at minimizing the operation cost, optimizing the active power of all dispatchable agents including distributed generators and flexible loads on demand side, and realizing the economic utilization of resources. A modified diffusion algorithm supporting full distributed optimization is proposed to solve it, which does not depend on the ''leader unit'' and is applicable to the actual problem. The modified algorithm has faster convergence speed, higher stability and stronger expansibility than consensus algorithm. Six scenarios are adopted to verify the proposed method. The result shows that the agent framework and the algorithm can cope with changing of communication topology and realize the ''plug and play''. The output will converge to the optimal dispatch solution even if communication fails. INDEX TERMS Consensus, diffusion algorithm, economic dispatch problem, fully distributed control, multi-agent system.
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