Abstract
In composite expansion planning, improving the efficiency and power quality of power supplied
from Renewable Energy Sources (RES) is highly essential. Therefore, this paper focuses on
developing an optimal power flow optimization model for minimizing power loss and harmonics
emanating from RES with emphasis on reducing their impacts on the Locational Marginal Prices
(LMP). In order to assess the magnitude of harmonics, grid modelling and simulation with RES
such as wind and solar energy was carried out using the Electrical Transient Analyzer Program
(ETAP 12.6.0) software. The proposed mixed integer nonlinear programming mathematical
model was solved using the Outer Approximation Algorithm (AOA) solver in the Advanced
Interactive Multidimensional Modelling System (AIMMS), and the efficiency of the model was
tested on the modified IEEE 6 bus and 24 bus system. The results obtained from simulations
reveal the efficiency of the proposed model in terms of effective costs reduction, nodal marginal
price reduction, minimization of harmonic losses and additional lines in the power system
network.