Abstract:
The Optimal Power Flow Problem is a large and complicated non-linear optimization problem in power system transmission, design, planning and operation subjected to various types of constraints. This research focuses on the understanding of Optimal Power flow (OPF) using Linear programming (LP) optimization method, firstly, the OPF problem is discussed in a literature manner in view of the historical review, problem formulation and the different methods that used in order to solve the OPF problem, then a detailed illustration of LP as an optimization tool, likewise, Linear programming Optimal Power Flow (LPOPF) using Piecewise linear approach and the full AC Incremental LP method illustration and mathematical formulation was presented, moreover a conceptual review of reactive power pricing and a proposed formulation of including the VAR cost function to the objective function was presented, lastly, a brief illustration about the Locational Marginal Prices (LMPs) and an implementation of both methods using POWERWORLD Simulator and Microsoft Excel on the 6-bus test system using step by step procedure and the IEEE 30 bus system was made, and then a comparison between both methods before and after the OPF and before and after the inclusion of the VAR cost function was presented.