A proposal for investment recovery of FACTS devices in deregulated electricity markets |
| |
| Affiliation: | 1. Department of Management and Management Science, Pace University, New York, NY 10038, USA;2. Department of Industrial and Systems Engineering, Auburn University, Auburn, AL 36849, USA;1. Young Researchers and Elite Club, Beyza Branch, Islamic Azad University, Beyza, Iran;2. Department of Electrical Engineering, Zanjan University, Zanjan, Iran;3. Department of Power and Control Engineering, School of Electrical and Computer Engineering, Shiraz University, Shiraz, Iran;1. Department of Stochastic Simulation and Safety Research for Hydrosystems (IWS/SC SimTech), University of Stuttgart, Germany;2. Energy Center, Department of Electrical Engineering, University of Chile, Chile;3. Department of System Analysis and Technology Assessment, Instiute of Engineering Thermodynamics, DLR, University of Stuttgart, Germany;4. School of Electrical and Electronic Engineering, The University of Manchester, UK;5. Department of Electrical and Electronic Engineering, The University of Melbourne, Australia;1. Department of Energy and Electrical Engineering, Korea Polytechnic University, Siheung-si, Gyeonggi-do 15073, Republic of Korea;2. Department of Electrical and Computer Engineering, The University of Texas at Austin, Austin, TX 78712, United States;3. Department of Electrical Engineering, Jeju National University, Jeju-si, Jeju Special Self-Governing Province 63243, Republic of Korea;4. Department of Electrical and Computer Engineering, Seoul National University, Gwanak-gu, Seoul 08826, Republic of Korea |
| |
| Abstract: | The paper presents a methodology to quantify the benefits, in terms of monetary values, of FACTS devices when used in deregulated electricity market for congestion management. The proposed methodology is used in the proposal for investment recovery of FACTS devices. Despite the long history of development and mature technology, the practical installations of FACTS devices are still limited. The main reasons for few installations are high investment cost and lack of viable measures to quantify the long list of benefits offered by FACTS device. In this respect, the methodology proposed in the paper provides a promising solution. The proposed methodology is based on establishing pricing schemes with and without FACTS devices using OPF formulation. The volume of market with FACTS devices and the increase in surplus due to them forms the basis of quantifying their benefits. The pricing scheme does not destroy the incentive effect in short run and also makes possible the provision of merchant FACTS. The proposed concept was tested and validated with TCSC in five-bus test system. Result shows that, when TCSC is used to relieve congestion in the system and the investment on TCSC can be recovered. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
