Centralized and decentralized optimal decision support for congestion management

Abstract This paper presents a framework to carry out optimal power flow in a coordinated multi-transaction/utilities decentralized system. An AC power flow model has been used in this work for independent optimal dispatch of each utility. The global economic optimal solution of the whole electric energy system with congestion management has also been done in this work using the interior point (IP) optimization procedure. In this approach, each participant tries to maximize its own profit with the help of information announced by the operator which are information related to system security constraints and public issues. The developed algorithm can be run in parallel, either to carry out numerical simulations or to obtain an optimal generation schedule in an actual multi-utility electric system. The study has been conducted on a three utility modified IEEE-30 bus system with two market models and six utility modified IEEE-118 bus system. The results clearly show the effectiveness of the suggested IP optimization based optimal generation schedule in decentralized scenario. It has been demonstrated that the suggested decentralized approach produces improved optimal dispatch solution with enhanced market benefits and can effectively manage the congestion in the system as compared to the centralized approach.