Valuation of FACTS for Managing Congestion in Bilateral Contract Markets
Paper in proceedings, 2007
This paper deals with congestion problem in the bilateral dominated electricity markets using redispatch method through a regulation market. In the bilateral market, the interest is to maintain the desired transactions between contracting parties. To solve the arising congestion in this market model, the rescheduled transactions are forced to be as close to the scheduled transactions as possible. The changes to contracts are non-discriminatory, hence only contracts that affect the congestion are modified. It has been found that when FACTS are included in the network, the transactions may not need to be modified. The cost of congestion to the ISO also reduces when FACTS are used. The IEEE 14-bus system is used to simulate the market and illustrate the proposed method. The study results show that FACTS is a viable option for congestion management, from the technical point of view as well as from economical point of view. The FACTS devices considered include the thyristor controlled series capacitor (TCSC) and the thyristor controlled phase angle regulator (TCPAR).