Deregulation in electricity markets requires fast and robust optimization tools for a secure and efficient operation of the electric power system. In addition, there is the need of integrating and coordinating operational decisions taken by different utilities acting in the same market. Distributed Energy Management Systems (DEMS) may help to fulfill these requirements. The design of a DEMS requires detailed simulation results for the evaluation of its performance. To simulate the operation of a DEMS from the optimization standpoint, a general purpose distributed optimization software tool, DistOpt, is used, and its capabilities are extended to handle power system problems. The application to the optimal power flow problem is presented.
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