Economic Benefit Analysis by Integration of Different Comparative Methods for FACTS Devices

Abstract

In modern power system, dependence on power electronic devices are mostly affected by voltage sag and results process interruption and that leads to huge monetary loss. Voltage sag is a bottleneck of streamlining power quality. FACTS devices are implemented with an eye to restoration of quality power supply. DVR and STATCOM are well known devices for the avoidance of voltage sag. Optimum selection of device for voltage sag mitigation in terms of economy is the objective of this proponent. Net present value (NPV), payback method, internal rate of return (IRR) and profitability index (PI) have been surfaced to critically analyze the acceptable device with least cost with higher return. Mathematical equations of these comparative indexes have been dealt with to give a concrete idea and growing an opinion to select the coveted device for practical purpose. The rampage of voltage sag can thus be tamed and quality of distribution can be achieved.