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Abstract
A novel technique based on a stability-constrained Optimum Power Flow (OPF) algorithm that properly captures important rotor angle and voltage stability conditions is proposed and described. The application of this technique to the optimal tuning of both Power System Stabilizers (PSS) and thyristor controlled series compensators (TCSC) to damp power system oscillations within the context of competitive electricity markets is proposed and discussed as well. The proposed technique is tested on the IEEE 14-bus benchmark system and compared with a "standard" OPF algorithm. The results obtained demonstrate the advantages of the proposed technique over existent dispatching techniques from the point of view of power dispatch and system stability conditions, and especially locational marginal prices.
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