Efficient and optimal approach for location and parameter setting of multiple unified power flow controllers for a deregulated power sector

This study presents an efficient approach to optimal allocation of unified power flow controller (UPFC) in a pool and bilateral power market. The optimisation technique has been used with an objective to maximising social welfare (SW) by suitable location, number and rating of the UPFC in power system working under a deregulated environment. The proposed method accurately evaluates SW by determining locational marginal pricing based on the marginal cost theory. The impact of the UPFC on system real power losses has also been investigated. The effectiveness of the proposed optimal technique has been tested on the 39-bus New England system with addition of four bilateral transactions.