Multi-Area Unit Scheduling and Reserve Allocation Under Wind Power Uncertainty

This paper proposes a decentralized methodology to optimally schedule generating units while simultaneously determining the geographical allocation of the required reserve.We consider an interconnected multi-area power systemwith cross-border trading in the presence of wind power uncertainty. The multi-area market-clearingmodel is represented as a two-stage stochastic programming model. The proposed decentralized procedure relies on an augmented Lagrangian algorithm that requires no central operator intervention but just moderate interchanges of information among neighboring regions. The methodology proposed is illustrated using an example and a realistic case study.