Planning of multi-type FACTS devices in restructured power systems with wind generation

Abstract Many electrical power systems are changing from a vertically integrated entity to a deregulated, open-market environment. This paper proposes an approach to optimally allocate multi-type flexible AC transmission system (FACTS) devices in restructured power systems with wind generation. The objective of the approach is to maximize the present value of long-term profit. Many factors like load variation, wind generation variation, generator capacity limit, line flow limit, voltage regulation, dispatchable load limits, generation rescheduling cost, load shedding cost, and multilateral power contracts are considered in problem formulation. The proposed method accurately evaluates the annual costs and benefits obtainable by FACTS devices in formulating the large-scale optimization problem under both normal condition and possible contingencies. The overall problem is solved using both Particle Swarm Optimization (PSO) for attaining optimal FACTS devices allocation as main problem and optimal power flow as sub optimization problem. The efficacy of the proposed approach is demonstrated for modified IEEE 14-bus test system and IEEE 118-bus test system.