Influence of thyristor-controlled series capacitor on wheeling cost incorporating the impact of real and reactive power losses

Abstract

Electric power transmission and transmission pricing are the key issues in the deregulated electric powerindustry. Factors like fast power demand growth, competition, service outage, and scarce natural resources maketransmission systems operate close to their thermal limits. However, new transmission systems cannot be built in dueto economic, environmental, and political reasons. For better utilization of existing power system capacities, the powerelectronic technology-based power system equipment called flexible alternating current transmission system (FACTS)devices like thyristor-controlled series compensators (TCSCs) can be effectively used for operating the transmissiongrid economically, rapidly, dynamically, and efficiently with increased flexibility and efficiency under different loadingconditions. TCSCs, being costly devices, may adversely affect some deregulated power market participants. This paperproposes a unit commitment algorithm for the minimization of power losses and determination of optimal location forTCSC placement. The impact of the TCSC in conjunction with the application of the proposed algorithm on thegeneration cost and wheeling cost is analyzed using a power flow-based line-by-line rolled-in transmission pricing scheme.The comparison between the annual generation costs and annual wheeling costs with and without the TCSC is carriedout under different load conditions in the IEEE 30-bus system. Results and simulations validate the economy of thesuitable TCSC’s optimal presence over its absence.