An economic analysis of time-based Demand Response programs and facts devices implementation for congestion management

Abstract

This paper explores the utilization of combination of Alternating Current Transmission System (FACTS) devices, time-based Demand Response (DR) programs, and Generation Redispatch (GR) in short-term congestion management as well as minimization of generation costs in power systems. To achieve this, a multi-stage market clearing procedure is formulated. At the first stage, the market is cleared based on generation cost minimization, without considering network constraints. Market clearing formulation for the second stage is developed considering congestion, in which FACTS device (Thyristor Controlled Series Capacitor (TCSC)), and time-based DR programs (Time of Use (TOU)) are optimally coordinated with GR in the presence of network constraints, to manage congestion at minimum costs. In addition, to make conditions more realistic, operational conditions spanning for a day (24 hours) are considered in this study. Then capabilities of these approaches in different scenarios for congestion management as well as minimization of generation costs are examined on IEEE 14-bus system. Results show that although, applications of time-based DR programs are more effective as compared to other approaches in terms of generation cost reduction but they have limited capability for congestion management due to consumption of responsive loads which usually decreases in one period and increases in another.