In the smart grid, the monitoring and estimation of the power grid states are essential factors for real-time operation and control. In this regard, wide area measurement system(WAMS) needs to be developed wherein the phasor measurement units (PMUs) and communication infrastructure (CI) are the essential components. To achieve the economical design of WAMS, PMUs need to be placed optimally so that with minimal cost, the complete system observability is ensured. Additionally the cost of CI, to connect all the PMUs, needs to be considered during the economical design of WAMS. Hence in this work, the simultaneous optimization of PMUs and CI cost has been considered as the objective whereas the complete system observability has been considered as the constraint. The consequence of zero injection buses (ZIBs) on the economic design of WAMS has also been considered. Additionally, the effect of N-1 contingency, pre-installed fiber optic and pre-installed PMUs have also been simulated. In this work, a new Steiner tree-based approach has been proposed for securing economical design of CI. The swarm intelligence based binary dragonfly algorithm (BDA) has been adopted for optimization of considered problem. To showcase the effectiveness of the proposed approach, it has been simulated on IEEE 14, 30 and 118 bus standard test systems. The comparative analysis has also been presented and it clearly indicates the effectiveness of the proposed approach compared to other reported methods.
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