Modeling the consumer benefit in the optimal power flow

The addition of a model of the consumer into the traditional optimal power flow (OPF) algorithm that minimizes supplier costs is investigated. The development of such a model is based on the solution of the OPF using an objective function for maximization of social welfare. A traditional OPF algorithm can be modified to solve the social welfare maximization problem by including price-dependent load models. This modification to the traditional OPF is intuitive and very simple. This modified OPF formulation facilitates simulation of spot markets for both real and reactive power. The algorithm is effective on systems of hundreds of buses, but small examples to compare the results to the traditional OPF are also insightful. The impact of price-dependent loads on systems with transmission congestion, increased fuel costs, and voltage problems can be studied.