Economic Evaluation of FACTS for Congestion Management in Pool Markets
Paper in proceedings, 2007
This paper deals with congestion problem in the deregulated electricity market using an optimal power flow framework (OPF). The congestion management method considered in this paper is based on a constrained re-dispatch generation schedules which are formed by the market. From the redispatch, the congestion management cost can be evaluated. The paper considers the installation and operation of selected flexible alternating current transmission systems (FACTS) devices in the transmission network in order to alleviate congestion and minimize the amount of active power which have to be redispatched. A cost-benefit analysis to evaluate the economical justification of using FACTS for congestion management is proposed in the paper. The optimal choice of FACTS placement in the network to satisfy the congestion management and the cost-benefit criteria is discussed. The IEEE 14-bus system is used to simulate the market and illustrate the proposed method. The study results show that when FACTS devices are included in the network, the amount of re-dispatched power in the pool is greatly reduced resulting in an optimal operating point closer to that dictated by the market settlement and 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).