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The proposed distributed dynamic clustering algorithm enables to group agentsbased on their pre-selected feature states. The clusters are determined bycomparing the distance of the agents' current feature states with averageestimates of the states in all clusters. The algorithm also provides averageestimates of pre-selected auxiliary states that can be utilized for controlpurposes. Two example applications of the algorithm are introduced. In thefirst application, the algorithm is applied to a microgrid with distributedbatteries that are controlled to achieve a common state of charge within agroup. However, a random selection of the batteries' groups results inadditional power losses during operation. The algorithm reduces the powerlosses by clustering the batteries based on the selected feature states: localloads and battery capacities, while the state of charges and output voltagesare selected as auxiliary states for control purposes. In the secondapplication, the algorithm is used to form a virtual energy storage frombatteries distributed in a microgrid.

A Novel Dynamic Peer-to-Peer Clustering Algorithm and Its Application to Aggregate Energy Storage Systems