Privacy-Preserving Coordinated Operation of Multi-Player Industrial Network Using Secure Aggregation
Electrified chemical industries with operational flexibility can reduce operating costs by shifting production and distribution decisions in response to time-varying electricity prices. However, chemical plants operate within process networks where coordinated demand response can exploit flexibility across multiple stakeholders. Centralized coordination requires access to stakeholders' local scheduling models and proprietary operational data, often incompatible with data-privacy requirements. Distributed optimization with an independent central coordinator (ICC) avoids direct model sharing, but iterative exchange of coupling variables can still reveal private model parameters. We propose a privacy-preserving distributed coordination framework for coordinated demand response in industrial networks. The framework integrates secure aggregation with an ICC-based alternating direction method of multipliers (ADMM) algorithm, so plant-level messages are numerically masked and become useful to the ICC only after aggregation. We test the framework on a multi-plant industrial gas network in which three air-separation units jointly schedule production and shipments to shared customer regions. To support stable participation, we incorporate a two-phase revenue-sharing mechanism that reallocates savings so every plant improves relative to its decentralized status quo. In a 31-day rolling-horizon simulation with synthetic data representing heterogeneous electricity prices and demand, the coordinated policy reduces total network cost by 19.77% relative to decentralized operation and achieves a full-month cost within 3.08% of a centralized social-welfare-maximization benchmark. We further quantify a conservative worst-case collusion mode, showing how unmasked iterates and auxiliary information can expose private objective parameters.