A new method for optimal location of FACTS devices in deregulated electricity market

Abstract

Under deregulated environment, transmission networks are operated close to their constraints. In this situation, FACTS devices can be useful in secure system operation. Private investorpsilas goal is maximizing their investment surpluses. In this paper, we propose a new algorithm for optimal location of FACTS devices that the objective function is maximizing FACTS device ownerpsilas surplus. According to this algorithm, maximum FACTS device capacities in transmission network are found which are acceptable economically and the priority of all acceptable projects are determine by calculating the rate of annual revenue and annual cost. The proposed algorithm has been implemented for optimal placement of TCSC on a nine buses test system and the results have been compared with other optimal location methods based on congestion management and increasing system load ability.