This article has been accepted for inclusion in a future issue of this journal. Content is final as presented, with the exception of pagination. IEEE TRANSACTIONS ON POWER SYSTEMS 1 Decentralized Multi-Area Dynamic Economic Dispatch Using Modified Generalized Benders Decomposition Zhigang Li, Student Member, IEEE, Wenchuan Wu, Senior Member, IEEE, Boming Zhang, Fellow, IEEE, and Bin Wang Abstract—Fluctuations in wind power in geographically dis- tributed areas are typically complementary, and therefore a coordinated multi-area dynamic economic dispatch may enable greater wind power penetration in interconnected power systems. Here we describe a decentralized approach based on a modified generalized Benders decomposition in which locally optimal cost function of each area is introduced. The technique exhibits rapid convergence and does not require parameter tuning. It is suitable for multi-area interconnected systems with a hierarchical control architecture. Comparative numerical simulations demonstrate that the performance of our method is favorable in terms of accuracy, convergence and computational efficiency. A case study on a real power system is also carried out to demonstrate the potential of this technique to increase wind power penetration. Index Terms—Decentralized optimization, dynamic economic dispatch, generalized Benders decomposition, multi-area power systems. NOMENCLATURE 1) Indices and Sets: Index of area. Index of tie-line bus. Index of iteration time. Index of scheduling time period. Index of tie-line. A Index set of areas. Index set of feasibility cuts of area . Index set of optimality cuts of area . Index set of tie-lines with starting nodes belonging to area . Index set of tie-lines with ending nodes belonging to area . Manuscript received August 04, 2014; revised November 02, 2014, De- cember 23, 2014, and February 01, 2015; accepted February 01, 2015. This work was supported in part by the National Key Basic Research Program of China (2013CB228205), in part by the National Science Foundation of China (51177080, 51190105), and in part by New Century Excellent Talents in University (NCET-11-0281). Paper no. TPWRS-01056-2014. The authors are with the Department of Electrical Engineering, Tsinghua Uni- versity, Beijing 100084, China (e- mail: wuwench@tsinghua.edu.cn). Color versions of one or more of the figures in this paper are available online at http://ieeexplore.ieee.org. Digital Object Identifier 10.1109/TPWRS.2015.2399474 2) Input Parameters and Functions: Coefficient matrix/vector/scalar of generation cost in area . Generation cost in area during time period . Vector of bus loads in area during time period . Vector of upper/lower capacity limits of internal lines in area during time period . Sensitivity coefficient matrix of network security constraints area during time period . Coefficient matrix relating the equivalent injected power at boundary buses and at internal buses in area . Vector of upper/lower capacity limits of tie-lines during time period . Coefficient matrix relating the equivalent internal injected power at boundary buses of area and tie-line flows. Vector of maximum/minimum generated output of units in area during period . Upward/downward spinning reserve requirement in area during time period . Vector of maximum upward/downward ramping rates of units in area during time period . Coefficient matrix relating the equivalent external injections in area and the equivalent internal injections in area . Total number of periods in the dispatch time horizon. Auxiliary variable. Locally optimal cost of a separated subproblem in area . 3) Decision Variables: Vector of the power flow at tie-lines during time period . Vector of generated output of units in area during time period . Vector of equivalent external injected power at boundary buses in area during period . Vector of equivalent internal injected power at boundary buses in area during period . 0885-8950 © 2015 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission. See http://www.ieee.org/publications_standards/publications/rights/index.html for more information.