Electrical power system simulation involves power system modeling and network simulation in order to analyze electrical power systems using design/offline or real-time data. Power system simulation software's are a class of computer simulation programs that focus on the operation of electrical power systems. These types of computer programs are used in a wide range of planning and operational situations for electric power systems. Applications of power system simulation include: long-term generation and transmission expansion planning, short-term operational simulations, and market analysis (e.g. price forecasting). These programs typically make use of mathematical optimization techniques such linear programming, quadratic programming, and mixed integer programming. Multiple elements of a power system can be modelled. A power-flow study calculates the loading on transmission lines and the power necessary to be generated at generating stations, given the required loads to be served. A short circuit study or fault analysis calculates the short-circuit current that would flow at various points of interest in the system under study, for short-circuits between phases or from energized wires to ground. A coordination study allows selection and setting of protective relays and fuses to rapidly clear a short-circuit fault while minimizing effects on the rest of the power system. Transient or dynamic stability studies show the effect of events such as sudden load changes, short-circuits, or accidental disconnection of load on the synchronization of the generators in the system. Harmonic or power quality studies show the effect of non-linear loads such as lighting on the waveform of the power system, and allow recommendations to be made to mitigate severe distortion. An optimal power-flow study establishes the best combination of generating plant output to meet a given load requirement, so as to minimize production cost while maintaining desired stability and reliability; such models may be updated in near-real-time to allow guidance to system operators on the lowest-cost way to achieve economic dispatch.

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