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A distributed, hierarchical, market based approach is introduced to solve theeconomic dispatch problem. The approach requires only a minimal amount ofinformation to be shared between a central market operator and the end-users.Price signals from the market operator are sent down to end-user device agents,which in turn respond with power schedules. Intermediate congestion agents makesure that local power constraints are satisfied and any potential congestion isavoided by adding local pricing differences. Our results show that in 20% ofthe evaluated scenarios the solutions are identical to the global optimum whenperfect knowledge is available. In the other 80% the results are notsignificantly worse, while providing a higher level of scalability andincreasing the consumer's privacy.

Collaboratively Optimizing Power Scheduling and Mitigating Congestion using Local Pricing in a Receding Horizon Market