Flexible AC transmission system devices: allocation and transmission pricing

The transmission of electricity differs from transportation of any typical commodity by some inherent aspects such as: the production needs to match t he consumption at the same time; system control is not an easy task; the el ectricity hows do not usually follow the economic law. The last aspect is n ormally observed when transmission systems are included in, for instance, a n economic dispatch problem. One way to minimize the operational costs caus ed by an overloaded transmission system is through the installation of Flex ible AC Transmission System (FACTS) devices in the system. They are able to change power flows by modifying the network parameters. This paper focuses on the ability of FACTS devices to change the overall costs of the system and their: impact on transmission pricing. The allocation and the determina tion of the FACTS required are also discussed. Some examples using the IEEE -14 system and the Brazilian electrical system of the Southern region are g iven to illustrate the concepts introduced in this paper. (C) 1998 Elsevier Science Ltd. All rights reserved.