An Effective Methodology with UPFC Controller for Locational Marginal Pricing in Competitive Energy Markets

P. Vidhya, R. Ashok Kumar, K. Asokan

Deregulation  and privatization of power market worldwide has forced to identify the different ancillary services and the service providers in order to price the services properly. Active and reactive power pricing is an important process that can never be avoided and constitutes a considerable part of economy. An exclusive reactive power management is essential for the secure operation of power systems and reactive power support is considered as an essential system support service for competitive electricity power markets. In this market, Pool- co and bilateral power trading plays a vital role where the amount of power and the flow path between the transacting generators and loads are fixed beforehand. The ability of FACTS devices is to control the power flow through designated routes in transmission lines and thereby reducing the overloading of lines and ensures the more flexible operation. The objective of this paper is to propose various transmission pricing approaches with FACTS devices of Unified Power Flow Controller (UPFC) for determining the locational marginal prices of proposed test system. A case study with Indian 246-NREG bus system is conceded to illustrate the effectiveness of the proposed transmission cost allocation procedures and test results are presented. Finally, the simulation results are compared with/without FACTS devices for Pool-co and bilateral energy markets.