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This paper deals with the balanced truncation model reduction ofdiscrete-time, linear time-varying, heterogeneous subsystems interconnectedover finite arbitrary directed graphs. The information transfer between thesubsystems is subject to a communication latency of one time-step. Thepresented method guarantees the preservation of the interconnection structureand further allows for its simplification. In addition to truncating temporalstates associated with the subsystems, the method allows for the orderreduction of spatial states associated with the interconnections between thesubsystems and even the removal of whole interconnections. Upper bounds on thel2-induced norm of the resulting error system are derived. The proposed methodis illustrated through an example.

Balanced Truncation Model Reduction of Nonstationary Systems Interconnected over Arbitrary Graphs