This project studies different solutions, presents an efficient and reliable approach, to solve the optimal power flow (OPF) problem for an industrial power system by using fmincon optimization method and technique. This fmincon toolbox from MATLAB attempts to find a constrained minimum of a scalar function of several variables starting at an initial estimate. This is generally referred to as constrained nonlinear optimization or nonlinear programming. The objective in OPF problem is to minimize the total cost function of generating units and the transmission losses, while maintaining the design and performance of the entire power system, satisfying the operational requirements such as the real and reactive power outputs of the generating units, bus voltages and power flow of transmission lines…etc. This project presents the most optimal solution of power flow incorporating wind generation cost, to supply power to a new domestic load located at the outskirts of an industrial area for three different scenarios. This residential is typical of long rural line with isolated load area. The challenge in our case study is to incorporate a wind generation unit as one type of green energy, that are currently being considered as an alternative source of power, to feed this long rural line for the domestic load without effecting in the total generation cost. A case study is carried out for three different scenarios incorporating wind generation cost. The results of OPF in this project shows that incorporating wind generation unit as renewable energy source with the entire power system will have a minimum generation cost and minimum transmission losses for the entire power system even if the wind generation cost assumed to be the most expensive one comparing with other conventional generation units. This project report provides implementation of Algorithm for the entire power load flow using the fast decoupled power flow (FDPF) and optimizes the best solution for the three different scenarios by using fmincon Interior Point Algorithm as one of optimization toolbox to achieve the minimum total cost function of generating units and minimum transmission losses.