Multi-area market clearing in wind-integrated interconnected power systems: A fast parallel decentralized method

The growing evolution of regional electricity markets and proliferation of wind power penetration underline the prominence of coordinated operation of interconnected regional power systems. This paper develops a parallel decentralized methodology for multi-area energy and reserve clearance under wind power uncertainty. Preserving the independency of regional markets while fully taking the advantages of interconnection is a salient feature of the new model. Additionally, the parallel procedure simultaneously clears regional markets for the sake of acceleration particularly in large-scale systems. In order to achieve the optimal solution in a distributed fashion, the augmented Lagrangian relaxation along with alternative direction method of multipliers are applied. The wind power intermittency and uncertainty are tackled through the interval optimization approach. Opposed to the conventional wisdom, adjustable intervals, as subsets of conventional predefined intervals, are introduced here to compromise the cost and conservatism of the solution. The confidence level approach is employed to accommodate the stochastic nature of wind power in a computationally efficient deterministic manner. The effectiveness and robustness of the proposed method are evaluated through several case studies on a two-area 6-bus and the modified three-area IEEE 118-bus test systems.