An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal TCSC Installation

Abstract

The evolving electricity market has increased power demand and has brought many social benefits. Meanwhile, the transmission systems are not developed to the same extent because building new lines is difficult for environmental and political reasons. Hence, the systems are driven close to their limits resulting in congestions and critical situations endangering the system’s security. Due to this, the study of enhancing the transfer capability of existing power networks to satisfy the increased power demand, maximum social welfare, and ensure its secure operation has become one of the challenges the Independent System Operator faces in the electricity market. In order to solve this problem without building more transmission lines, the installation of FACTS devices can be a better alternative. Among FACTS devices, thyristor-controlled series compensator (TCSC) is one that can redistribute power flow in the network to improve the transfer capability of the existing system effectively. However, it is very difficult to implement. This paper presents the implementation of the Cuckoo Optimization Algorithm (COA) to solve the OPF problem which is formulated as a nonlinear optimization problem with equality and inequality constraints in a power system for social welfare maximization via the optimal installation of TCSC devices. As Cuckoo Search Algorithm (CSA), the COA also starts with an initial population-based metaheuristic optimization inspired by the nature of brood parasitism of some cuckoo species. However, unlike CSA, COA uses the cuckoo’s style for egg-laying to optimize the local search instead of using Lévy flights. This model is tested in IEEE 14 and IEEE 30 bus systems. Simulations results are compared with GA and GWO and show that the COA is one useful method for TCSC installation to maximize social welfare.