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This paper presents a new method for the decentralized solution of the DC optimal power flow (OPF) problem in large interconnected power systems. The method decomposes the overall OPF problem of a multiarea system into independent OPF subproblems, one for each area. The solutions of the OPF subproblems of the different areas are coordinated through a pricing mechanism until they converge to the global OPF solution. The prices used for the coordination of the subproblem solutions are the prices of electricity exchanges between adjacent areas. Test results from the application of the method to the three-area RTS-96 and the Balkan power system are reported.
Bakirtzis et al. (Tue,) studied this question.
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