SOCIAL WELFARE MAXIMIZATION WITH FACTS DEVICES IN DEREGULATED MARKET

Abstract

To facilitate fair competition among various stack holders in power market, there is a strong need of congestion management to alleviate congestion. Congestion in the transmission lines is one of the technical problems, affecting the market participants the most, in the deregulated environment. There are two types of congestion management methodologies to relieve it: the non-cost free methods and the cost-free methods. Among them later method relives the congestion technically whereas the former is related with the economics. In this report congestion is relieved by Thyristor Controlled Series Compensator (TCSC) with social welfare being the objective. The ideal objective function is to maximize the overall profit of all market participants' i.e. social welfare maximization. The objective function used is nonlinear hence in solving this function a nonlinear optimization technique, namely Particle Swarm Optimization (PSO) is used to obtain the global optimal solution.