Inside Ellipsoid Outside Sphere (IEOS) methodology for large-scale nonconvex optimization and pricing in power systems

The Alternating Current Optimal Power Flow (ACOPF) problem is at the heart of economically efficient and reliable electricity transmission network operation. The ACOPF and its variants are large-scale nonconvex optimization problems which are hard to solve. However, efficient ACOPF calculation could save billions of euros per year and reduce harmful emissions.

Today, the major ACOPF computational challenge is to consistently find a global ACOPF solution using fast and robust solution techniques.

Accordingly, we will pursue the following five objectives: First, we will explore our recent Inside Ellipsoid Outside Sphere (IEOS) methodology for solving the ACOPF problem. Second, we consider the security and ramping constraints in the IEOS-ACOPF derivations. Third, the binary decisions involved in network optimization are considered in the IEOS-ACOPF developments.

Fourth, we address limited observability issue for online IEOS-ACOPF calculation.

Finally, the difficult problem of optimal pricing in electricity markets with nonconvexities will be investigated using the suggested IEOS methodology.

It is highly expected that the current proposal, through its inter-disciplinary approach will develop a series of pioneering leads to a series of ground-breaking new methodologies.

We expect that the developed theoretical results offer promise not only for solving the ACOPF and its variants, but they provide a strong alternative approach to solve nonconvex optimization problems.