Marginal value of FACTS devices in transmission-constrained electricity markets

M. Sahraei-Ardakani; S. A. Blumsack

doi:10.1109/PESMG.2013.6673037

Marginal value of FACTS devices in transmission-constrained electricity markets

M. Sahraei-Ardakani
, S. A. Blumsack

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

5 Scopus citations

Abstract

With the smart grid technology, the topology of the transmission network can be co-optimized simultaneously with the generation. One technology that allows adjustment of network topology is Flexible AC Transmission System (FACTS). Recently some studies suggest inclusion of FACTS devices in the wholesale electricity markets. Here we assess their values based on the value of the additional transfer capacity they offer to the market. This value is equal to the improvement they make to the social welfare. On the margin, we call it the marginal value of FACTS capacity. We calculate this marginal value analytically on a simple two-node system. A sensitivity-based formulation is provided for calculation of the marginal value in larger and more realistic networks. Simulation studies on a 2-node and a 30-bus system are presented to show how the formulation works.

Original language	English (US)
Title of host publication	2013 IEEE Power and Energy Society General Meeting, PES 2013
DOIs	https://doi.org/10.1109/PESMG.2013.6673037
State	Published - 2013
Event	2013 IEEE Power and Energy Society General Meeting, PES 2013 - Vancouver, BC, Canada Duration: Jul 21 2013 → Jul 25 2013

Publication series

Name	IEEE Power and Energy Society General Meeting
ISSN (Print)	1944-9925
ISSN (Electronic)	1944-9933

Other

Other	2013 IEEE Power and Energy Society General Meeting, PES 2013
Country/Territory	Canada
City	Vancouver, BC
Period	7/21/13 → 7/25/13

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 7 Affordable and Clean Energy

All Science Journal Classification (ASJC) codes

Energy Engineering and Power Technology
Nuclear Energy and Engineering
Renewable Energy, Sustainability and the Environment
Electrical and Electronic Engineering

Access to Document

10.1109/PESMG.2013.6673037

Cite this

@inproceedings{e567cb6612c6409a99ad71176d2fd85d,

title = "Marginal value of FACTS devices in transmission-constrained electricity markets",

abstract = "With the smart grid technology, the topology of the transmission network can be co-optimized simultaneously with the generation. One technology that allows adjustment of network topology is Flexible AC Transmission System (FACTS). Recently some studies suggest inclusion of FACTS devices in the wholesale electricity markets. Here we assess their values based on the value of the additional transfer capacity they offer to the market. This value is equal to the improvement they make to the social welfare. On the margin, we call it the marginal value of FACTS capacity. We calculate this marginal value analytically on a simple two-node system. A sensitivity-based formulation is provided for calculation of the marginal value in larger and more realistic networks. Simulation studies on a 2-node and a 30-bus system are presented to show how the formulation works.",

author = "M. Sahraei-Ardakani and Blumsack, \{S. A.\}",

year = "2013",

doi = "10.1109/PESMG.2013.6673037",

language = "English (US)",

isbn = "9781479913039",

series = "IEEE Power and Energy Society General Meeting",

booktitle = "2013 IEEE Power and Energy Society General Meeting, PES 2013",

note = "2013 IEEE Power and Energy Society General Meeting, PES 2013 ; Conference date: 21-07-2013 Through 25-07-2013",

}

Sahraei-Ardakani, M & Blumsack, SA 2013, Marginal value of FACTS devices in transmission-constrained electricity markets. in 2013 IEEE Power and Energy Society General Meeting, PES 2013., 6673037, IEEE Power and Energy Society General Meeting, 2013 IEEE Power and Energy Society General Meeting, PES 2013, Vancouver, BC, Canada, 7/21/13. https://doi.org/10.1109/PESMG.2013.6673037

TY - GEN

T1 - Marginal value of FACTS devices in transmission-constrained electricity markets

AU - Sahraei-Ardakani, M.

AU - Blumsack, S. A.

PY - 2013

Y1 - 2013

N2 - With the smart grid technology, the topology of the transmission network can be co-optimized simultaneously with the generation. One technology that allows adjustment of network topology is Flexible AC Transmission System (FACTS). Recently some studies suggest inclusion of FACTS devices in the wholesale electricity markets. Here we assess their values based on the value of the additional transfer capacity they offer to the market. This value is equal to the improvement they make to the social welfare. On the margin, we call it the marginal value of FACTS capacity. We calculate this marginal value analytically on a simple two-node system. A sensitivity-based formulation is provided for calculation of the marginal value in larger and more realistic networks. Simulation studies on a 2-node and a 30-bus system are presented to show how the formulation works.

AB - With the smart grid technology, the topology of the transmission network can be co-optimized simultaneously with the generation. One technology that allows adjustment of network topology is Flexible AC Transmission System (FACTS). Recently some studies suggest inclusion of FACTS devices in the wholesale electricity markets. Here we assess their values based on the value of the additional transfer capacity they offer to the market. This value is equal to the improvement they make to the social welfare. On the margin, we call it the marginal value of FACTS capacity. We calculate this marginal value analytically on a simple two-node system. A sensitivity-based formulation is provided for calculation of the marginal value in larger and more realistic networks. Simulation studies on a 2-node and a 30-bus system are presented to show how the formulation works.

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U2 - 10.1109/PESMG.2013.6673037

DO - 10.1109/PESMG.2013.6673037

M3 - Conference contribution

AN - SCOPUS:84893206006

SN - 9781479913039

T3 - IEEE Power and Energy Society General Meeting

BT - 2013 IEEE Power and Energy Society General Meeting, PES 2013

T2 - 2013 IEEE Power and Energy Society General Meeting, PES 2013

Y2 - 21 July 2013 through 25 July 2013

ER -

Marginal value of FACTS devices in transmission-constrained electricity markets

Abstract

Publication series

Other

UN SDGs

All Science Journal Classification (ASJC) codes

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