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It is well known that the reserves/redundancies built into the transmissiongrid in order to address a variety of contingencies over a long planninghorizon may, in the short run, cause economic dispatch inefficiency.Accordingly, power grid optimization by means of short term line switching hasbeen proposed and is typically formulated as a mixed integer programmingproblem by treating the state of the transmission lines as a binary decisionvariable, i.e. in-service or out-of-service, in the optimal power flow problem.To handle the combinatorial explosion, a number of heuristic approaches to gridtopology reconfiguration have been proposed in the literature. This paperextends our recent results on the iterative heuristics and proposes a fast griddecomposition algorithm based on vertex cut sets with the purpose of furtherreducing the computational cost. The paper concludes with a discussion of thepossible relationship between vertex cut sets in transmission networks andpower trading.

Power Grid Decomposition Based on Vertex Cut Sets and Its Applications to Topology Control and Power Trading