Thyristor Controlled Series Capacitor effective incremental transmission pricing determination

Abstract

Movement of electricity industry environment from vertically integrated one to a distributed one has imposed the disintegration of the electric power industry components like Generation, Transmission and Distribution, made the market forces to drive the electricity price and lessen the net cost through amplified competition. The competitive electricity market setting imposes extensive contact to transmission and distribution networks, and connects scattered electricity suppliers as well as customers. Transmission charges signify a minor proportion of overall operational expenses in utilities in competitive electricity markets and hence transmission pricing or wheeling cost need to be a reasonable cost-effective pointer used by the energy market for decision making on source provision, system enlargement and system reinforcement. The wheeling cost can be decreased by reducing power loss via incorporating proper FACTS (Flexible Alternating Current Transmission System) equipment. This paper presents the concepts of deregulation of electric power industry, wheeling and Incremental wheeling cost computation methodologies, a detailed presentation of two types of long-run incremental wheeling cost computation methodologies, and provides a wheeling cost reduction technique involving optimal placement of Thyristor Controlled Series Capacitor (TCSC) of suitable capacity. The per unit wheeling cost and annual wheeling cost are calculated and compared before and after the placement of suitable TCSC with the objective of minimisation of the aforementioned two costs, by the wheeling cost reduction technique applied to two standard IEEE bus systems.