Application of facts devices for congestion management in the deregulated electricity market | |
| Author | Acharya, Naresh |
| Call Number | AIT Thesis no.ET-05-4 |
| Subject(s) | Flexible AC transmission systems--Economic aspects Electricity--Marketing |
| Note | A t):iesis proposal submitted in partial fulfillment of the requirements for the degree of Master of Engineering,School of Environment, Resources and Development |
| Publisher | Asian Institute of Technology |
| Abstract | Transmission congestion is a major concern in the present deregulated electricity market because it hinders the free competition in electricity trade. The present trend in congestion management is to use pricing tools in the form of nodal and zonal pricing. Despite these tools, the congestion is still in place and is increasing alarmingly. So, there exist opportunity for technological means to remove or to reduce the transmission bottleneck. In this respect, the Flexible AC Transmission system (FACTS) devices can provide very promising solution. In the present thesis work, the suitability of applications of FACTS devices, specially, in relieving congestion in the deregulated market structure, is analyzed. A hybrid type of market is considered, which is modeled in an OPF framework. The main objective in OPF formulation is to maximize the social welfare. However, in case of system congestion this objective is accompanied by minimization of pool and bilateral transaction deviation term. This allows both pool and bilateral participants to compete for transaction during congestion, according to their willingness to pay. Two major FACTS devices namely TCSC and SVC are incorporated in OPF to resolve the congestion problem. They are modeled as power injection model. Major issues related to the FACTS device location, size and cost is analyzed in detail. Sensitivity factor method is used to find the optimal placement of TCSC and SVC. In case of TCSC, a new placement method based on LMP difference is proposed. Result is compared from both methods by placing TCSC in each line. The result shows that proposed method is more reliable and applicable in deregulated environment. The sizing of SVC and TCSC is based on optimization of the same objective function. Further, a new proposal based on additional surplus is proposed for investment recovery of FACTS devices. This method allows the system operator to capture the benefit derived from FACTS devices and then transfers it to the FACTS device investor. The effect of fixed and price elastic demand is also analyzed. The result shows that price elastic demand provides additional degree of freedom for ISO in managing congestion. It also stabilizes LMP and reduces the risk of price volatility in deregulated electricity market. Result shows that the TCSC is very helpful in relieving congestion and reduces LMP difference across the congested interface. SVC is effective for congestion management only when the system has heavy deficit of reactive power, or when large reactive power is being transferred from one zone to the other zone through some link that has limited rating. The result also shows that use of FACTS devices lead to increase in overall pool welfare, reduce the curtailment of load and increase the producer and consumer surpluses. At the same time, it reduces the merchandize surplus (i.e. the congestion rent), which also indicates the reduction in congestion level. The result also shows that when TCSC is employed to remove one transmission bottleneck, it can create another bottleneck. This can result in high LMP at the sink side of new bottleneck. This indicates that there can be individual winners and losers when FACTS is used to relieve congestion. The result also shows that FACTS devices can be economically beneficial for congestion management when the additional surplus derived from use of such devices is transferred to recover the investment. So, overall result shows that FACTS devices are technically and economically beneficial for relieving congestion in the deregulated electricity market |
| Year | 2005 |
| Type | Thesis |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC)) |
| Academic Program/FoS | Energy Technology (ET) |
| Chairperson(s) | Nadarajah, Mithulananthan |
| Examination Committee(s) | Weerakom Ongsakul;Surapong Chirarattananon |
| Scholarship Donor(s) | Government of Norway (NORAD) |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, 2005 |