DSM based Congestion Management in Pool Electricity Markets with FACTS Devices

Abstract In a restructured electricity market environment, when the producers and consumers of electric energy desire to produce and consume in amounts that would cause the transmission network to operate at or beyond one or more transfer limits, the system is said to be congested. The congestion in the system cannot be allowed to persist for a long time, as it can cause sudden rise in the electricity price and threaten system security and reliability. Congestion management (CM) is one of the most important and challenging tasks of the Independent System Operator (ISO) in the deregulated environment. FACTS devices can play an important role for demand side management and thereby controlling transmission line congestion. In this paper, demand side based CM approach to manage transmission line congestion has been presented for pool based electricity market model. The results have also been obtained for IEEE 24 bus test system.

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