This work presents a methodology to represent and analyze the influence of FACTS (flexible AC transmission systems) devices on the multiperiod economic dispatch problem. Two FACTS devices are represented: the series compensator and the phase shifter. The aim is to find the best location of FACTS devices in order to minimize the expected thermal generation costs and the investments on these devices in a prespecified time interval. The methodology handles the operational interdependence between cascade hydro plants which characterize the hydrothermal coordination problem. Transmission losses and circuit capacity variation are also taken into consideration. The approach is tested in a small system and to the system of the southern region of Brazil in order to illustrate the application of the algorithm. Some wheeling transactions are also introduced to investigate their influence on the FACTS location. The results show the robustness of the approach while highlighting the main problems which need be investigated.
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