Determination of Spot Price and Optimal Power Flow in Deregulated Power System

Abstract

In this paper, determinations of spot price with optimal power flow and important factors that may affect generating companies' profit margins through wholesale electricity trading are discussed. These factors include spot price, generators' efficiencies and capabilities, types of generators owned, fuel costs, transmission losses and settling price variation. It demonstrates how proper analysis of these factors using the solutions of Optimal Power Flow (OPF), can allow companies to maximize overall revenue. And through this OPF analysis, companies will be able to determine, for example, which generators are most economical to run, best locations for generators to be situated at, and also the scheduling of generators as demand changes throughout the day. It illustrates how solutions of OPF can be used to maximize companies' revenue under different scenarios. In this paper above tasks are demonstrated on 124-bus Indian utility real-life system and results have been presented and analyzed. All simulations are performed by using Power World Simulator software.

Keywords: OPF, Electricity Market, Spot Price