AC Optimal Power Flow Incorporating Demand-Side Management Strategy

This chapter presents a methodology for solving AC optimal power flow problem using demand-side management strategy. A single objective function, which is composed of fuel cost of thermal power plants, is minimized. Ramp down/up rate limits, active/reactive power generation capacity, and balance equation are considered as constraints of optimization problem. Active power demand of each bus is flexible and can maximally be reduced to 80% of its forecasted value. Similarly, it is supposed that electricity consumption at each bus can be increased up to 1.2% of its base value. Hours and values of active load increase/decrease at each bus are determined as decision variables in a way that the total amount of the load increase over the study horizon is equal to the amount of the load decrease in the same operating period. A nonlinear programming problem is developed under general algebraic mathematical modeling system (GAMS) to find how much $ is saved in AC optimal power flow analysis, while demand is managed at each bus.