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In the day-to-day operation of a power system, the system operator repeatedlysolves short-term generation planning problems. When formulating these problemsthe operators have to weigh the risk of costly failures against increasedproduction costs. The resulting problems are often high-dimensional and variousapproximations have been suggested in the literature.  In this article we formulate the short-term planning problem as an optimalswitching problem with delayed reaction. Furthermore, we proposed a controlvariable technique that can be used in Monte Carlo regression to obtain acomputationally efficient numerical algorithm.

A Control-variable Regression Monte Carlo Technique for Short-term Electricity Generation Planning