Optimal power dispatch in deregulated market considering congestion management

In a competitive power market, the task of an independent system operator (ISO) is to ensure full dispatch of the contracted power. However, if it causes the line flows to exceed their limits, thus threatening the system security, the ISO makes decision on the curtailment of the contracted power. An optimal power flow (OFF) model has been presented in this paper to minimize the curtailment of the contracted powers in a power market having bilateral, multilateral as well as firm contracts. A strategy has been suggested for allocation of transmission losses among various market participants. Role of flexible AC transmission system (FACTS) devices on reducing the transmission congestion and curtailment of the contracted power has also been studied. The study has been conducted on a modified IEEE-14 bus system.