Impact of FACTS Devices on Transmission Pricing and Loop Flows

Transmission pricing has been an important issue after the power system restructuring and deregulation. Due to competition and to maximize the profit, generation companies (GENCOs) are looking for technical and economical solution to minimize the transmission cost for power delivery to customers. FACTS are one such device that provides a solution to a certain extent. There has been an increased use of the FACTS devices for this purpose as they are effective means of controlling the path of flow of power, thereby reducing problems such as loop flows. In this paper, a 9-bus power system is simulated in Matlab/Simulink to demonstrate the impact of the FACTS devices on the transmission pricing as well on the loop flows. Paper also presents a study done on the dynamic performance of FACTS devices.