Optimal Allocation of FACTS Devices in Restructured Power Systems Integrated Wind Generation

Abstract

This paper proposes an approach to optimally allocate flexible AC transmission system (FACTS) devices in market-based restructured power systems based on Expected Benefit (EB) and installation cost of FACTS devices (FDs). The aims of the approach are minimizing device investment cost, and the locational marginal pricing (LMP) differences between buses to maximize revenue. This revenue is defined as the difference between EB with and without FACTS installation. The expected cost includes operating cost not only under normal condition but also under contingencies along with their associated probabilities to occur. The proposed method accurately evaluates the annual cost and benefits obtainable by FACTS devices installation by formulating a large-scale optimization problem that contains power flow analyses for a large number of system states representing annual power system operations. The objectives for normal state are maximizing social welfare by minimizing LMPs differences between buses and minimizing of generations re-scheduling, while the objectives in case of contingency are maximizing social welfare as well as minimizing compensations paid for generations re-scheduling and load shedding cost. The overall problem is solved using both Particle Swarm optimization (PSO) for attaining optimal FACTS devices setting and allocation as main problem and optimal power flow to calculate the operating costs and benefits as sub optimization problem. The effectiveness of the proposed approach is demonstrated on modified IEEE 14-bus test system and IEEE 118-bus test system.