A decentralized operation of the transmission grid for scheduling inter-utilities power exchanges is proposed. This approach is well suited for market-oriented environments; it achieves a market equilibrium while the operational independence of each interconnected utility is preserved. We employ decomposition-coordination techniques in combination with an interior-point/cutting-plane method in order to reduce the number of iterations of the decomposition algorithm. The paper includes test results on IEEE-based systems.
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Aguado et al. (2001) studied this question.
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