This paper presents a “marginal equivalent” decomposition algorithm that partitions a linear programming problem into subproblems and coordinates their solutions by exchanging the information of free variables and binding constraints. Convergence of the algorithm is proven. The method is applied to a multi-area optimal power flow problem in a market environment. Numerical testing of a large-scale two-area system demonstrates the effectiveness of the method.
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Zhao et al. (2013) studied this question.