This paper presents a second-order network flow algorithm specially designed for hydrothermal scheduling problems. The algorithm is based on the Truncated Newton method and takes advantage of the particular layout of the hydro scheduling network. The three-diagonal structure of the Hessian matrix is also exploited. Heuristic strategies for variable partition into basic-superbasic-nonbasic sets are suggested to improve the algorithm's efficiency. Tests with systems of dimensions up to 27 hydro plants in cascade have been performed in order to evaluate the algorithm's performance and compare some variable partition strategies. Results have demonstrated the high efficiency of the code. K e y w o d s -hydrothermal scheduling, network flow algorithm, second-order method, nonlinear optimization.
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