Abstract
AC optimal power flow (ACOPF) is typically used for operational dispatch decisions. However, DC optimal power flow (DCOPF) based on linearization of the ACOPF is widely used for locational marginal price (LMP) calculation in market operation and settlements due to its efficiency and reasonable accuracy. The DCOPF is considered to be sufficient in many cases. Especially for calculating LMPs of distribution systems, the DCOPF is a good option considering the large number of nodes in distribution systems. In industry, DCOPF has been employed by several software tools for chronological LMP simulation and forecasting.
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