Multi-Area Economic Dispatch Under Renewable Integration: Optimization Challenges and Research Perspectives

The shift toward decentralized energy systems and the rapid growth of renewable integration have brought renewed attention to the Multi-Area Economic Dispatch (MAED) problem. Unlike single-area dispatch, which focuses only on local balance, MAED must also coordinate inter-area exchanges, respect regional operating limits, and ensure overall reliability. This paper reviews both MAED and its dynamic extension, the Multi-Area Dynamic Economic Dispatch (MADED). The review examines core objectives—cost minimization, emission reduction, and renewable utilization—and surveys a wide range of solution methods. These include classical mathematical programming, metaheuristic and hybrid approaches, and more recent advances based on machine learning and reinforcement learning. Special emphasis is placed on uncertainty-oriented models that address demand variability, market dynamics, and renewable fluctuations. The discussion also highlights the role of Distributed Energy Resources (DERs), Energy Storage Systems (ESSs), and Demand Response (DR) in improving system flexibility and resilience. Despite notable progress, research gaps remain, including limited treatment of uncertainty, insufficient integration of DR, oversimplified modeling of electric vehicles, and the marginal role of reliability. To address these issues, a research agenda is proposed that aims to develop more adaptive, scalable, and sustainable dispatch models. The insights provided are intended to support both academic research and practical applications in the planning and operation of interconnected grids.