optimal allocation of FACTS devices for provision of voltage control ancillary service

An allocation method for FACTS devices for fair procuring of VAR ancillary service from generators and FACTS devices in the restructured electricity market with the consideration of voltage stability margin has been presented in this paper. In the proposed real-time market, generators and FACTS devices submit their bids to system operator and the best combination of participants for procuring of required reactive power are selected. Therefore, in order to guarantee the most viable VAR procurement that satisfy the required level of system security and ensure adequate payment of VAR service, an optimization problem that simultaneously minimizes the total payment of the procured VAR and maximize social welfare while maintaining a set of physical constraints including voltage stability margin is developed. The IEEE 14-bus network is used to illustrate how proposed method has efficient role in minimization of cost of reactive power procurement. The results show that the insertion of FACTS devices in electrical systems seems to be a promising strategy to improve reactive power procurement costs.