Security constrained optimal power flow for an economical operation of FACTS-devices in liberalized energy markets

Among the ongoing liberalization of the global energy markets, several technical developments in the field of power electronic based transmission devices lead to a significant restructuring of the electric power supply. These FACTS-devices (Flexible AC Transmission Systems) enable a continuous and wear-resistant control of active and reactive power flows as well as voltage control. The incorporation of the control capabilities provided by FACTS-devices into an optimal power flow (OPF) opens up an unused potential for reducing power losses as well as cost for power transmission of the power system operator. This paper describes the optimization method basing on sequential quadratic programming (SQP) including models of FACTS-devices suitable for a gradient based optimization. Furthermore, the economically efficient operation of FACTS-devices is shown using different scenarios.