Multi-area coordinated decentralized DC optimal power flow

This paper provides a framework to carry out a multi-area optimal power flow in a coordinated decentralized fashion. A DC nonlinear optimal power flow model is used. Losses are incorporated through additional loads based on cosine approximations. The model makes it possible the independent optimal dispatch of each area while the global economical optimum of the whole electric energy system is achieved. This is possible by means of the Lagrangian relaxation decomposition procedure. Optimal energy pricing rates for the energy traded through the interconnections are derived. The developed algorithm can be run in parallel either to carry out numerical simulations or in an actual multi-area electric energy system.