Research Specifications

This article deals with congestion management of transmission networks to maximize the penetration of wind power by proposing an incremental welfare consensus algorithm based on flexible alternating current transmission systems (FACTS) and demand response (DR) program. The proposed model takes the locational marginal prices as an input to manage both FACTS device and DR resources. To this end, an innovative two-stage market-clearing procedure is developed. Where in the first stage, the players bid to the market aimed at maximizing their profit, and the independent system operator clears the market based on social welfare maximization. In the second stage, a generation redispatch problem is executed in which FACTS device controllers and incentivebased DR are optimally coordinated to minimize the rescheduling costs of generation companies. Two distinct types of FACTS devices consisting of thyristor controlled series capacitor and static synchronous compensator are utilized here. Finally, a case study is accomplished on the modified IEEE one-area 24-bus reliability test system. The results achieved from simulations confirm that the proposed interactive DR and FACTS model not only alleviates the congestion of the system, but also increases the flexibility of the system to harvest the wind power as much as possible.