Optimal location of unified power flow controller for congestion management

In deregulated environments, electricity companies are likely to experience an increase in the number of daily market transactions. Hie penetration of renewable energy generation is likely to bring further uncertainty of network management in terms of power flows and voltage: where the systems are being operated towards their limits. Subsequently the stressed systems would result in congestion in transmission networks Therefore, effective means for congestion management of transmission networks will become increasingly important, particularly for transmission system operators (TSOs). The benefits of using flexible AC transmission system (FACTS) controllers on transmission networks for static an dynamic control are well recognized. In this paper, a sensitivity based three-step optimization method, capable of determining the congestion cost optimal location and rating of a unified power flow controller (UPFC) is presented. A bilateral electricity market model is assumed and the proposed method is illustrated using the IEEE 30 bus system. Results show high congestion cost reductions, which reinforces the UPFC as a viable solution. In addition, it is shown that the sensitivity based method is efficient at identifying the vicinity of the optimal location for installation, as the number of required simulations is kept to a minimum. Copyright (C) 2009 John Wiley & Sons, Ltd.