Real-time pricing and distributed decision makings leading to optimal power flow of power grids

Motivated by distributed control problems of power supply/demand networks, this paper investigates application case studies of the real-time pricing and distributed decision makings methodology. We consider the optimal power flow problem with the DC power flow model, and the New England 39-bus test system is used. Stability of the resulting price based control system is analyzed with consideration for specific structures of the power flow problem. The resulting simulation studies illustrate the efficiency of the proposed method and validate the stability analysis procedure.