Optimal demand-price elasticity modelling in optimal power flow via a nonlinear interior point method

Abstract

Spot pricing has been introduced in the power market in order to induce load shifts to achieve the aims of load management strategies. In order to ensure the successful introduction of such a pricing scheme, it is important to include accurate load-price elasticity models in optimal power flow based marginal cost calculation methodologies by making minor modifications. This paper builds up the demand-price elasticity model in the context of interior point method based optimal power flow algorithm. No extra unknowns are introduced and the modifications are limited to the diagonal entries of an augmented Hessian matrix. Moreover, the proposed method is extended to a multi-period time horizon, the effects of cross-time load shifting can therefore be accounted for. Numerical results are given to demonstrate the efficiency of the proposed method.