Algorithmic management of power grid

Peter Haenni

• 1 min read
Algorithmic management of power grid
SIPOC map auto generated by the ProcessHorizon web app

The Banker's Algorithm can be conceptually applied to managing a stable electricity grid, especially in a complex and decentralized system like Switzerland’s.

The goal is to avoid 'grid deadlock' conditions like brownouts, blackouts, or frequency collapse, by pre-checking demand requests and ensuring safe operating margins.

Banker's concept to algorithmic power grid management

Maximum resource need: Peak power demand forecast per region/load center

Current allocation: Real-time consumption or load

Available resources: Available generation + imports - operating reserves

Requesting more resources: Demand spikes (cold/heat waves, EV charging)

Safe state check: Simulate system post-allocation: is reserve margin OK ?

Use Case for Switzerland’s complex Power Grid

  • High share of renewables (hydropower, solar)
  • Cross-border dependency for winter electricity
  • Decentralized generation (roof solar, small hydro)
  • Increasing electrification of heating & transport

Example Scenario

Region A requests +50 MW during a cold winter evening. The system checks Region A’s max possible need (e.g. 80 MW), verifies current load (e.g. 30 MW) and computes if granting +50 MW keeps enough reserves to meet other regions' maximums. If not, the request is delayed or reduced, or load balancing/ramping up elsewhere is triggered.

This prevents overcommitting generation and risking under-frequency events.

Benefits of Banker's Approach in Grid

  • Deadlock avoidance: no overload or cascading failures
  • Predictive load balancing: improved grid resilience
  • Prioritized allocations: critical infrastructure gets power first
  • Dynamic reserve management: ensures safe margin across all nodes

Advanced Integration (Future-Ready)

If combined with smart grid and AI systems, a Banker's-style algorithm can:

  • Make real-time safe-state simulations
  • Use machine learning to predict max demand profiles
  • Enforce automated load shedding or battery dispatch when allocation would breach safety

Using the following link you can access this sandbox SIPOC model in the ProcessHorizon web app and adapt it to your needs (easy customizing) and export or print the automagically created visual AllinOne SIPOC map as a PDF document or share it with your peers: https://app.processhorizon.com/enterprises/F45kizbtAhXCDoDux6BjnNoT/frontend