1. Introduction to Information Gap Decision Theory Method

Nowadays, variable nature of electrical demand and uncertain behavior of renewable energy resources cause large power systems to operate at their stability boundaries. Hence, occurrence of a contingency may cause an interconnected electricity grid to be faced with cascaded outages, loss of dynamic stability, and a widespread blackout. In recent years, various methods have been presented by scholars to model uncertainties associated with energy market prices, electricity demand, and renewable energy resources. Information gap decision theory (IGDT) is a practical strategy with no need to probability distribution function of uncertain parameter (which is used in probabilistic approaches such as chance-constrained and stochastic programming methods) and membership functions employed in fuzzy algorithms. Hence, this chapter presents a comprehensive review on application of IGDT in power system studies. Moreover, a mathematical framework is provided to model the uncertain parameter using IGDT.