A framework for compromising between power generation cost and power system security in regulated market using MO-OPF

Transmission line congestion in electricity market is lead to increase the energy cost and change in local marginal prices. So, it is probable that the market power is manifested. Market power may prevent the full competition in Electricity Market. Moreover, in this condition, with operating of power system in its boundary conditions, the system may be damaged and the security of the system may be disturbed. On the other hand, decreasing the line flows from their optimal value, cost and consequently, price of energy are increased. So, there is need to have a compromise between the line flow decrease and the cost those impose. In this paper, a framework for compromising between social cost and security are suggested. The suggested algorithm uses Multi-Objective Optimal Power Flow conception and with compromising, selects the best decreased line flow from its allowed value subject to minimum cost. This leads to decrease the risk of damaging of the system and result in more power system security. The proposed algorithm is simulated on the 14-Bus IEEE test system.