A Marginal Equivalent Decomposition Method and Its Application to Multi-Area Optimal Power Flow Problems

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.