Optimal power flow in deregulated electricity markets

In deregulated electricity markets, there are inaccessible problems that are how to properly find the optimal operational conditions and accurately make sure the liabilities shouldered by the respective market participants. This paper presents an optimal power flow algorithm. The algorithm utilizes the complementary linear programming technique to find the severe nodal violations that lead variables of other nodes to violate their inequality constraints. The relation between sets of load nodes and sets of generator nodes is analyzed, and the contribution of each generator to individual loads is calculated under proper assumptions. The feasibility of the proposed technique is demonstrated by simulation using the WSCC 9-node and IEEE 30-node test systems.