by Benjamin Biegel, Jakob Stoustrup, and Palle Andersen.

This chapter presents dual decomposition as a means to coordinate a number of subsystems coupled by state and input constraints. Each subsystem is equipped with a localmodel predictive controller while a centralized entity manages the subsystems via prices associated with the coupling constraints. This allows coordination of all the subsystems without the need of sharing local dynamics, objectives and constraints. To illustrate this, an example is included where dual decomposition is used to resolve power grid congestion in a distributed manner among a number of players coupled by distribution grid constraints.