Abstract
A new type of hierarchical optimising control algorithm is presented in the paper. A double loop ISOPE (Integrated System Optiniisation and Parameter Estimation) algorithm with price coordination is used, and dynamic model parameter estimation for real process derivatives approximation is employed instead of the difference equation approach, hence overcoming a main disadvantage of previous ISOPE techniques. This method is more suitable for real industrial application and, as an example of possible use, results from a simulation study of a power plant steady-state optimisation example are shown.
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