Application of optimal power flow to interchange brokerage transactions

Abstract This paper presents the application of an optimal power flow (OPF) for evaluating an economic power interchange. The OPF implements a new class of optimization technique called the augmented Lagrangians—a nonlinear programming approach that combines the dual and the penalty methods. The good convergence properties enable this algorithm to handle complex nonlinear constraints. The method uses the parametric analysis of the OPF to determine the amount of energy for interchange. The price quotations are obtained directly from the OPF solutions. Once the necessary indices for interchange have been determined, the economic power interchange is then evaluated using the interchange brokerage operation.