ACOPF

The ACOPF model involves solving a linear/non-linear objective function with linear
and non-linear equality and in-equality constraints. The objective function can be cost
minimization or social welfare maximization. Unlike DCOPF, it is required to solve
the non-linear power flow equations, and hence a non-linear optimization solver is
required to obtain a solution. For large systems, the dimension is quite high and it is
generally performed as an offline study. The mathematical formulation is as follows:

...................................................................................................................(6)
..........................................................................................(7)
..........................................................................................(8)
............................................................................................(9)
.........................................................................................(10)
..........................................................................................(11)
.........................................................................................(12)

(7) and (8) are the real and reactive power balance equations for all buses in the
system. (9) models the line flow limit in-equality constraints. (10) and (11) enforce
generations limits on real and reactive power for all generators. Voltage limits are
enforced using (12). Additional constraints pertaining to taps and shunts may also be
added to the optimization problem. For a practical system, the problem size is quite
large and hence obtaining a converged solution sometimes becomes difficult.
The LMP at a bus is the lagrangian multiplier corresponding to the equality constraint.
Unlike in DCOPF, where the LMP components are readily available, additional decomposition techniques are required to obtain LMP components [4-11]. Moreover,
there exists no unique solution to this decomposition. Perhaps, this is one the driving
factors for DCOPF to be preferred over ACOPF.