Power, Control, and Data Processing Systems

Power, Control, and Data Processing Systems

A Linearized Optimal Power Flow Framework for Locational Marginal Pricing and Risk Management in Wind-Integrated Power Systems with Disaggregated Flexible and Contingency Reserve Modeling

Document Type : Original Research

Author
Mohammadhossein Tamimi
Faculty of Electrical Engineering of K. N. Toosi University of Technology
10.30511/pcdp.2026.2092024.1085
Abstract
The increasing penetration of wind power has made Optimal Power Flow (OPF) studies more dependent on uncertainty modeling, reserve allocation, and accurate market-price calculation. This paper develops a linearized OPF framework for evaluating Locational Marginal Prices (LMPs) and reserve requirements in wind-integrated power systems. The model distinguishes between flexible ramping reserves and contingency reserves and includes constraints that prevent thermal units from assigning the same unused capacity to both products. To improve the accuracy of the conventional Direct Current Optimal Power Flow (DC-OPF) while preserving a linear structure, transmission losses are represented through a loss-approximated formulation. The proposed model is tested on the IEEE 118-bus system using GAMS and MATPOWER. The results show that reserve separation affects both dispatch decisions and nodal LMPs, especially under wind-power deviations. A sensitivity study also shows that changing the objective from generation-cost minimization to active-power-loss minimization reduces network losses from 69.3 MW to 18.4 MW, at the expense of a higher generation cost.
Keywords
Linearized Optimal Power Flow
Locational Marginal Pricing (LMP)
Wind Power Integration
Flexible Reserve
Contingency Reserve
IEEE 118-bus system
Subjects
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Power, Control, and Data Processing Systems
Volume 3, Issue 3
Summer 2026
Pages 37-45

  • Receive Date 19 June 2026
  • Revise Date 06 July 2026
  • Accept Date 16 July 2026
  • First Publish Date 16 July 2026
  • Publish Date 01 September 2026