Challenges to optimization techniques in a deregulated environment

Power engineering is the oldest and most traditional of the various areas within electrical engineering, yet no other facet of modern technology is currently undergoing a more dramatic revolution in both technology and industry structure. One of the more impressive areas of technical improvement over the past twenty years has been the emergence of powerful and practical numerical optimization methods for power-system engineering and operation, methods that ensure that the very best electrical and financial performance can be atained. The value contibuted by optimization use in power systems is considerable, both in terms of economics, but also in terms of operational reliability and security. Systems run with optimization-based monitoring and control react better to both expected patterns in power demand and equipment availability and unexpected events such as storm damage and sudden equipment failure