Optimal Placement of FACTS Controllers for Congestion Management in the Deregulated Power System

This paper proposes a methodology to determine the optimal location of Flexible AC Transmission System (FACTS) controllers for Congestion Management (CM) in the restructured electrical power system. An approach to find the optimum placement of Thyristor Controlled Phase Angle Regulators (TCPAR) and Thyristor Controlled Series Compensators (TCSC) has been proposed in this paper. The proposed methodology is based on the sensitivity of transmission loss which a controller is installed. The total system losses and the power flows are considered as the performance indices. The traditional optimal power flow (OPF) problem is modified to include the market players, who will compete and trade simultaneously, ensuring the system operation stays within the security limits. In this paper, pool and bilateral contracts are considered. Here, an integrated methodology is proposed that includes the FACTS Controllers in a bilateral contract framework to maintain the system security and to minimize the deviations from the contractual requirements. The simulation results on IEEE 30 bus system show that the sensitivity factors could be used effectively for the optimal location of FACTS controllers in response to the required objectives