Multi-area decentralized optimal hydro-thermal coordination by the Dantzig-Wolfe decomposition method

This paper presents a new application of the Dantzig-Wolfe decomposition method for decoupling the multi-area hydrothermal coordination problem. The aim of the model is to provide coordinated mechanisms to carry out medium-term operation planning studies maximizing autonomy and confidentiality for each area and assuring global economy to the whole system. The original multi-area multi-stage problem is broken into subproblems (one for each area) and a master problem (the coordinator). The coordination scheme is based on energy prices at border buses, which vary along the study period. Some algorithmic implementations may reduce the number of iterations. Numerical results for the interconnected hydro-thermal system of Central-America are presented.