Effect of optimally located FACTS devices on active and reactive power price in deregulated electricity markets

Abstract

Effect of optimally located FACTS devices on active and reactive power price in deregulated electricity markets. In a deregulated power industry, the real time pricing of real and reactive power has emerged as an important issue to create fair open access in the electricity markets. These prices have a great impact on efficient and economic operation of electricity markets. Their accurate determination can send the signal for secure operation of the system. In this paper, the effect of optimally located FACTS devices: static VAr compensator (SVC), thyristor controlled series capacitor (TCSC) and thyristor controlled phase angle regulator (TCPAR) on real time prices has been studied. A mixed integer nonlinear programming (MINLP) based model is proposed for optimal placement of FACTS devices along with calculating active and reactive power marginal prices for an IEEE 14 bus system. The impact of placing FACTS devices on marginal prices and social welfare is observed. The cost of FACTS devices has also been considered for the study