Long-Term Economic Model for Allocation of FACTS Devices in Restructured Power System Integrated Wind Generation

This paper proposes an approach to optimally allocate multiple types of flexible AC transmission system (FACTS) devices in market-based power systems with wind generation. The main objective is to maximize profit by minimizing device investment cost, and the system's operating cost considering both normal conditions and possible contingencies. The proposed method accurately evaluates the long-term costs and benefits gained by FACTS devices installation to solve a large-scale optimization problem. The objective implies maximizing social welfare as well as minimizing compensations paid for generation rescheduling and load shedding. Many technical operation constraints and uncertainties are included in problem formulation. The overall problem is solved using both Particle Swarm Optimizations (PSO) for attaining optimal FACTS devices allocation as main problem and optimal power flow as sub optimization problem. The effectiveness of the proposed approach is demonstrated on modified IEEE 14-bus test system and IEEE 118-bus test system.