Twenty Years of Application of Stochastic Dual Dynamic Programming in Official and Agent Studies in Brazil-Main Features and Improvements on the NEWAVE Model

The objective of NEWAVE model, based on stochastic dual dynamic programming algorithm, is to solve the long term operation planning problem of large scale interconnected systems, such as the Brazilian one. The year of 1998 is the milestone for the first official use of the NEWAVE model in Brazil, whose development has started in 1993 by the Brazilian Electric Energy Research Center (CEPEL). This paper outlines the key features and recent improvements that allowed keeping the NEWAVE model in the state-of-the art and its broad range of practical applications in official and agent studies and decision making in the Brazilian electrical sector along these twenty years.