Valuation of FACTS for Managing Congestion in Combined Pool and Bilateral Contract Electricity Markets
Paper in proceedings, 2007
This paper deals with congestion problem in the combined pool and bilateral contract markets using redispatch method through a regulation market. In the combined market, a weighting factor is used for the volume traded in the pool and bilateral contract markets. The pool trades could be re-dispatched more than the bilateral transactions and vice versa, depending on the weighting factors. It has been found that when FACTS are included in the network, the amount of re-dispatched power for relieving network congestion in the combined market is greatly reduced resulting in an optimal operating point closer to that dictated by the market settlement. 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.