A Comparative Analysis of Energy Storage Management in Panama with ADMM Optimization

This paper presents a decentralized optimization approach using the Alternating Direction Method of Multipliers (ADMM), specifically tailored to integrate energy storage within Panama’s power grid. The ADMM facilitates distributed problem solving, which is crucial for integrating diverse and spatially distributed energy resources, including renewables and storage units. A representative model of the power grid of the Republic of Panama was optimized considering generation, demand, the national grid, and the use of an energy storage system. The results demonstrate that strategic use of energy storage not only stabilizes the power supply by compensating for the intermittency of renewable energy but also reduces overall energy costs. The detailed impact of the cost of storage activities on the model’s results is elucidated, illustrating the importance of accurately pricing storage activities in achieving cost-effective operational strategies.