Minimizing Balancing Market Congestion Re-dispatch Costs by Optimal Placements of FACTS Devices

The paper proposes a method to help evaluate how optimal placement of FACTS devices, and in particular thyristor controlled phase shifter transformers, can reduce costs associated with congestion re-dispatch in a balancing market. Balancing market exists in markets in which most of the trading is done via decentralized bilateral contracts. In these markets only final adjustments necessary to ensure secure system operation is carried out at a centralized balancing market. Each market player can participate in the balancing market by submitting offers and bids to increase and decrease its initially submitted active generation output. The proposed technique is based on mixed integer linear programming, so that a power system network is represented by a simplified DC power flow. Market participants´ offers and bids are also represented by linear models. Results show that applications of FACTS devices can significantly reduce costs of congestion re-dispatch.