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OPTIMAL PLACEMENT OF TCSC BASED ON MIN-CUT


ALGORITHM FOR CONGESTION MANAGEMENT IN
DEREGULATED ELECTRICITY MARKET
Thanhlong Duong
thanhlong802003@yahoo.com

Jiangang Yao
yaojiangan126@yahoo.com
Department of Electrical Engineering
University of Hunan Changsha,
Hunan, 41082,China

Vietanh Truong
vatruong05@gmail.com
Department of Electrical Engineering,
Hochiminh City University of Technology,
Hochiminh,70000, Vietnam

ABSTRACT
FACTS devices such as thyristor controlled series compensators (TCSC) by controlling the
power flows in the network, can help to reduce the flows in heavily loaded lines resulting in an
increased loadability of the network and reduced cost of production. This paper represents the
Min-cut algorithm to determine the weakest zone (bottle neck) of the power system that
can often lead to congestion then combination with loss sensitivity index to determine optimal
location of TCSC. With this method, the number of branches which need to be investigated to
determine the position placement TCSC for congestion management in deregulated electricity
market will significantly be decreased. Study results on IEEE 5-bus, IEEE 14-bus have proved
the effectiveness of the algorithm.
Keywords: Congestion, Deregulated power system, TCSC, Min cut.
1. INTRODUCTION
In a competitive electricity market, consumer will have alternatives in buying electricity for
their own need. This process involves in transferring of power between supplier and
consumer. Power flow due to transactions can causes overloads in the transmission lines. This
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condition is called congestion. Congestion occurs when the transmission network is unable to
accommodate all of the desired transactions due to a violation of system operating limits [1].
To avoid overloading, it needs to adjust the capacity of the generator, this will make the
generation costs to be pushed from the optimal value C1 to value C2 (C1<C2) and electricity
prices in the nodes will significantly be increased. Therefore, if the redistribution power
by TCSC in power systems without having dispatch generating capacity of the generators is
solved, the cost of electricity production will decrease.
The use of FACTS devices to control power flow on transmission lines is also known as the
measure to remove congestion, reduce the risk of losing power, increase the reliability of
electricity supply to customers, reduce total costs, ensure economic benefits. It also helps
avoiding speculation and electricity prices increased, when the incidents of congestion occurs
without having to re-schedule the generation or making system topological changes. As the
cost for these devices is high, optimization of location, size and settings of the FACTS
controllers has become the very important factor that needs to take into account [2].
There are several methods for finding the optimal locations of the FACTS controllers
in operation and control power systems to achieve these objectives. But mostly, these works
all have in common the following research methods and techniques.
Population based intelligent techniques to find optimal solutions, such as Genetic Algorithm
(GA), Evolutionary Programming (EP), and Particle Swarm Optimization (PSO). References
[3] have proposed TS/SA method to determine the optimal setting of FACTS parameters,
minimizing the total generator fuel cost within power flower security limits. In [4] an
approach to find the optimal location of (TCSC) in the power system to improve the
loadability of the lines and minimize the total loss using genectic algorithm. In [5] deals with
the optimal choice and allocation of FACTS devices in multi-machine power systems using
genetic algorithm to achieve the power system economic generation allocation and dispatch in
deregulated electricity market. EP was proposed to obtain optimal placement of multi-type
FACTS devices for simultaneously maximizing the total transfer capability whereas
minimizing the total system real power loss and the results are better when compared to loss
sensitivity index method [6]. The optimal location for single and multi-type FACTS devices to
improve system loadability with minimum cost of installation was determined using PSO [7].
Listed method and trial is also known under the name trial and error method often used to
find the optimal location of FACTS devices in power system. Based on sensitivity factors,
compensated value is tested on the branches which listed in a table to find the most optimal
position in the objective function accordingly to the original purpose: increase the total
transmission capacity of the system, maximize social welfare [8]. In [9], [10], authors
proposed LMP difference and congestion rent contribution methods for optimal location of
TCSC to reduce the congestion cost. In [11] an overload sensitivity factor (power flow index)
is used for optimal location of series FACTS devices for static congestion management. In
[12], optimal placement of TCSC for reducing congestion cost has been presented by using a
performance index, which incorporates two factors. One is the sensitivity matrix of the TCSC
with respect to the congested line and the other is the shadow price corresponding to the
congested line. In [13] a method based on the sensitivity of the reduction of total system VAR
power loss and real power performance index to determine the optimal location of TCSC to
Congestion management.

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M.A. Khaburi, M.R. Haghifam use the partition method [14] to limit the scope of the search
solution. That is, the power system was divided into two areas according to subjective. The
area which has a lot of generator focused is called source area and the area which has a lot of
load focused is called sink area. The two areas are connected by the lines.
Compensated equipment is installed in the branch between regions to check and search the
optimal solution according to the objective.
Although the previous study achieved the result and the specific objectives are set out.
However, the approach and problems solving effectiveness still remain high. These studies are
not able to determine the limit space which helps reduce the searching time. This paper
represents the application of Min-cut algorithm to determine the weakest zone (bottle neck)
of the power system that can lead to congestion and then points out the suitable positions of
TCSC. With this method, the number of branches which need to be investigated to determine
the position placement TCSC for congestion management in deregulated electricity market
will significantly be decreased
2. Static modeling of TCSC
Fig. 1 shows a simple transmission line represented by its lumped equivalent parameters
connected between bus-i and bus-j. Let complex voltages at bus-i and bus-j are Vii and
Vjj respectively. The real and reactive power flow from bus-i to bus-j can be written as [15],
[16].

Fig. 1. Model of transmission line


Pij = V i2 g ij V i V j ( g ij cos ij + bij sin ij)

(1)

Qij = V i2 (bij + bsh) V i V j [g ij sin ij bij cos ij]

(2)

Similarly, the real and reactive power flow from bus-j to bus-i is
(3)
P ji = V 2j g ij V iV j ( g ij cos ij bij sin ij)
(4)

Q ji = V 2j (bij + bsh) + V i V j [ g ij sin ij + bij cos ij ]

Where ij= i-j, gij =

rij
2

rij + xij

, bij = 2 xij 2 , gij and bij are the conductance and susceptance of
rij + x ij

the line-ij.
The model of transmission line with a TCSC connected between bus-i and bus-j is shown in
Fig. 2. During the steady state the TCSC can be considered as a static reactance -jxc. The real
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and reactive power flow from bus-i to bus-j, and from bus-j to bus-i of a line having series
impedance and a series reactance are

Fig. 2. Model of transmission line with TCSC


P ijc = V 2j g ij' V iV j ( g ij' cos ij + b ij' sin ij)

(5)

Q ijc = V i2 (b ij' + b sh) V iV j [ g ij' sin ij b 'ij cos ij ]

(6)

P cji = V 2j g ij' V iV j ( g ij' cos ij b ij' sin ij)

(7)

Q cji = V 2j (b ij' + b sh ) + V i V j [ g ij' sin ij + b ij' cos ij ]

The active and reactive power loss in the line having TCSC can be written as
PL
QL

= P + P = g (V + V ) 2 V V g cos
= Q + Q = (V + V )(b + b ) + 2 V V b cos
ij

ij

'
ij

ji

2
i

ji

2
i

2
j

2
j

'
ij

sh

'
ij

'
ij

ij

(8)
(9)

ij

where
'

g ij

r ij

=
r

2
ij

+ ( xij xc )

'
and bij =

(x x )
+ (x x )
c

ij

2
ij

ij

The change in the line flow due to series capacitance can be represented as a line without
series capacitance with power injected at the receiving and sending ends of the line as shown
in Fig. 3.

Fig. 3. Injection model of TCSC


The real and reactive power injections at bus-i and bus-j can be expressed as
(10)
P iF = V i2 g ij' ' V i V j ( g ij' ' cos ij + b ij' ' sin ij )
Q iF = V i2 b ij' ' V iV j ( g ij' ' sin ij b 'ij' cos ij )

(11)

P Fj = V 2j g ij' ' V iV j ( g ij' ' cos ij b ij' ' sin ij )

(12)

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(13)

Q Fj = V 2j b ij' ' + V iV j ( g ij' ' sin ij + b ij' ' cos ij )

Where
''

g ij

xc r ij ( xc 2 xij )

(r + x )[r + ( xij xc ) ]
2
ij

2
ij

x +x x)
( r + x )[ r + ( x x ) ]
xc ( r ij

2
ij

2
ij

and

''

bij

2
ij

2
ij

2
ij

ij

ij

In the present study, the above model is incorporated in the OPF. The maximum compensation
by TCSC is limited to70% of the reactance of the un-compensated line where TCSC is
located.
3. OBJECTIVE FUNCTION
A power system exists or has just designed, always exist a set the weakest branch (bottleneck) that can lead to overload. To avoid overloading, it needs to adjust the capacity of the
generator, this will make the generation costs to be pushed from the optimal value C1 to value
C2 (C1<C2) and electricity prices in the nodes will significantly be increased. Therefore, if the
redistribution power by TCSC in power systems without having dispatch generating
capacity of the generators is solved, the cost of electricity production will decrease.
Due to high cost of FACTS devices, it is necessary to use cost-benefit analysis to analyze
whether new FACTS device is cost effective among several candidate locations where they
actually installed. The TCSC cost in line-k is given by [17]
C TCSC ( k )

= c. x ( k ). P .Base _ power
c

2
L

(14)

where c is the unit investment cost of FACTS, xc(k) is the series capacitive reactance and PL
is the power flow in line-k. FACTS devices cost function are integrated in OPF formulation.
The objective function for placement of TCSC will be

min
Pi

NG
i =1

C i ( P i ) + C TCSC

(15)

4. Min cut and optimal placement


4.1 Introduction to Min-cut of TCSC
This section will give an introduction to the Min-cut algorithm [18]. The algorithm is
written in Matlab programming language and will be applied to power system to determine the
minimum cut. It is weakest branches in power systems (bottle- neck), that can lead to
congestion (overload) when capacity distribution among power station aims at minimizing
generation cost.
Min cut: the cut in the network, must be cut so that it splits the sources and the load is located
in the two halves of the planes. When the transmission capacity from s to t through the cut will
be equal to the total capacity through of the arcs that the cut through. The cut with capacity
through smallest from s to t is called minimum cut. The cut not guarantee split source (s) and

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sink (t) is not called the cut in min cut algorithm. Because of with this cut, sources (s) are still
capable of transmitting to sink (t) through remain arcs. Fig. 4 presents a typical split of the
theory.

Fig. 4. A typical split of the theory


4.2. Modeling power network using Min-cut
The power network is modeled as a directed graph G(N,A) where power flow is represented
as flow in the graph. The set of nodes, N, corresponds to the buses of the power network. The
power line between buses ni, nj N is represented by an arc aij A. Each arc is assigned uij,
denoting the maximum allowable power flow through that line, and subsequently, over the arc
in the network. For the basic Min - cut algorithm there are two special nodes, the virtual
source (s) and the virtual sink (t), representing the combination of the generator (s) and load
(s), respectively. Each line out of the virtual source has a maximum flow that matches the
generation of the connected node, and each line into the virtual sink represents the load
demanded by the connected node. Constrained by power flow equations, each node in the
graph must also satisfy Pin = Pout, except for the virtual source and sink nodes. The virtual
sink may be considered the network ground node. The nodes s and t, together with G, form
the graph G(N,A). Fig. 5 is an example power system which has an equivalent directed graph
representation in Fig. 6.
The end result of algorithm is slipt network into two separate area as Fig. 7: that is,
combination of source (s) connected to combination of sink (t) by branches that total capacity
through is smallest. It is the branches bottle neck in network that can lead to congestion.
Therefore, the installation TCSC on the branches that the minimum cut passes through will
quickly remove congestion. Flow chart determination the branch bottle neck by min cut
algorithm is presented in Fig. 8

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Fig. 5. Example power system network with generators of 100 at A , 50 at B and loads of 40,
50, 20, 30, and 10.

Fig. 6. Power network shown as a directed flow graph with virtual nodes s and t. Edges are
labeled with (flow, capacity). The capacity over all edges is fully utilized.

Fig 7. Position of the minimum cut on the diagram modeling

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, -

'
# $ %

'

&

"# $ %& # $ % '


("# $ %)
*'+ *'

Fig. 8. Flow chart Min cut algorithm


4.3. Optimal placement of TCSC
After selecting the m branches from Min cut algorithm, transmission power on each branch is
S1, S2., Sm. this is branches bottle neck which can lead to congestion in the set branches
that the minimum cut passes through as Fig. 9

Fig. 9. Combination branches bottle neck which determined from min cut algorithm
Ref [13] show that: Loss sensitivity with respect to control parameter of TCSC placed
between buses i and j can be written as
2
2
Q L
r ij xij
2
2
= [V i + V j 2 V i V j cos ij ]. 2 2 2
aij =
( 16)
( r ij + xij )
xij

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Criteria for optimal location of TCSC: suitable position to install TCSC is at another
branch with branch overloaded and branch that the having the most positive loss sensitivity
index in the set branch bottle neck that the minimum cut passes through. Flow chart
determination optimal placement of TCSC is presented in Fig. 10

"

$
('#

!"#"

!"#"

!"#"

('#

"

$
0

"

%
&

' %

Fig.10. Proposed procedure of choosing optimal placement of TCSC

5. CASE STUDY AND DISCUSSIONS


The proposed method for the optimal placement of the TCSC for congestion management
has been implemented on IEEE 5-bus (American Electric Power) and IEEE 14-bus test
systems. The network and load data for IEEE 5- bus shown in Appendix and IEEE 14-bus are
available in [19]. MATPOWER, a toolbox of MATLAB, has been used for simulations. One
of the approach solvers for OPF in MATPOWER is based on linear Programming.
5.1. 5-Bus Test System
The 5-bus system is shown in Fig. 11. Bus-1 has been taken as a reference bus.

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Fig.11. 5-bus system


The load flow of 5-bus system is shown in Table I. From the load flow, it was found that
branch 1(12) was overloaded. To avoid overloading, it needs to adjust by decreasing the
output of generator 1 to 141.26 and increasing outputs of generators 2, 3, to 108.28, 65.93
respectively then congestion has been relieved. However, this will make the generation cost to
be pushed to value 9745.7 and electricity prices in the nodes will significantly be increased as
show in Table II, III and Fig 13.
TABLE I
POWER FLOW RESULT OF 5-BUS SYSTEM

TABLE II
POWER OF GENERATOR BEFORE AND AFTER DISPATCH

TABLE III
RESULTS BASED ON OPF WITHOUT TCSC FOR IEEE 5-BUS SYSTEM

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Fig.12. The LMP values, with and without TCSC for IEEE 5-bus system (TCSC in line2)

Therefore if the redistribution power by TCSC in power systems without having


dispatch generating capacity of the generators is solved, the cost of electricity
production will decrease. So, the TCSC should be installed at branch 2(1-3). This is
because of the branch bottle neck of power system in the set branches (1-2 and 1-3)
which the minimum cut passes through. From the calculated sensitivity index aij of
Table IV it can be observed that, the branch 2(1-3) is also the branch that the having
the most positive loss sensitivity index. System power flow result after placing TCSC
in line-2 is shown in Table V. The value of control parameter of TCSC for computing
power flow is taken as 0.165 pu. It can be observed from Table V that congestion has
been relieved and total costs are shown in Table VI. From Table III it can be observed
that total cost without TCSC is 9745.7($/h). According to the table VI, after application
of TCSC in branch 2, the total cost of the network has decreased from 9745.7($/h) to
8734.6 ($/h), that shows 1011.1 ($/h) saving. So, the annual saving is 0.36 (million$).
It can be observed from Table IV that: this method, the number of branches which need
to be investigated to determine the position placement TCSC can be reduced more than
compare with result in [13].
TABLE IV
CALCULATED SENSITIVITY INDICES

TABLE V
POWER FLOW RESULT OF 5-BUS SYSTEM AFTER PLACING TCSC IN BRANCH- 2

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TABLE VI
RESULTS BASED ON OPF WITH TCSC INSTALLED IN BRANCH 2(1-3) FOR IEEE 5-BUS SYSTEM

5.2 IEEE 14-Bus Test System


The IEEE 14-bus system is shown in Fig. 13. There are 20 line sections in IEEE 14bus system. The line flow limit is set to 100 MVA.

Fig.13. IEEE 14-bus system.

The load flow of 14-bus system is shown in Table VII. From the load flow, it was
found that branch 1(12) was overloaded. To avoid overloading, it needs to adjust by
decreasing the output of generator 1 to 153.55 and increasing outputs of generators 2, 3,
6, 8 to 40.09, 52.02, 0.02, 19.46 respectively then congestion has been relieved.
However, this will make the generation cost to be pushed to value 8180.1 and
electricity prices in the nodes will significantly be increased as show in Table VIII, IX
and Fig 14.
TABLE VII
POWER FLOW RESULT OF 14-BUS SYSTEM

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TABLE VIII
POWER OG GENERATOR BEFORE AND AFTER DISPATCH

TABLE IX
RESULTS BASED ON OPF WITHOUT TCSC FOR IEEE 14-BUS SYSTEM

Fig.14. The LMP values, with and without TCSC for IEEE 14-bus system (TCSC in line2)

Therefore if the redistribution power by TCSC in power systems without having


dispatch generating capacity of the generators is solved, the cost of electricity
production will decrease. So, the TCSC should be installed at branch 2(1-5). This is
because of the branch bottle neck of power system in the set branches (1-2 and 1-5)
which the minimum cut passes through. From the calculated sensitivity index aij of
Table X it can be observed that, the branch 2(1-5) is also the branch that the having the
most positive loss sensitivity index. System power flow result after placing TCSC in
line-2 is shown in Table XI. The value of control parameter of TCSC for computing
power flow is taken as 0.12204 pu. It can be observed from Table XI that congestion
has been relieved and total costs are shown in Table XII. From Table IX it can be
observed that total cost without TCSC is 8180.1($/h). According to the table XII, after
application of TCSC in branch 2, the total cost of the network has decreased from
8180.1($/h) to 8091.6 ($/h), that shows 88.4 ($/h) saving. So, the annual saving is 0.03
(million$). It can be observed from Table X that: this method, the number of branches
which need to be investigated to determine the position placement TCSC can be
reduced more than compare with result in [9].

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TABLE X
CALCULATED SENSITIVITY INDICES

TABLE XI
POWER FLOW RESULT OF 14-BUS SYSTEM AFTER PLACING TCSC IN BRANCH- 2

TABLE XII
RESULTS BASED ON OPF WITH TCSC INSTALLED IN BRANCH 2(1-5) FOR IEEE 14-BUS SYSTEM

6. CONCLUSIONS
Congestion management is one of the technical challenges in power system deregulation. This
paper represents the application of Min-cut algorithm combination with loss sensitivity index
to determine optimal location of TCSC.
With this method, the number of branches which need to be investigated to determine the
position placement TCSC for congestion management in deregulated electricity market will
significantly be decreased.
The study results on IEEE 5-bus and IEEE 14-bus system have proved the effectiveness of the
algorithm. At the power system bottle neck is the most effective position to install TCSC in
order to enhance loadability, prevent the line overload, reduce total cost as well as selling
price in the market.

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Appendix: The 5-bus system


The IEEE 5-bus system (American Electric Power) is shown in Fig. 11. Bus-1 has been taken
as a reference bus. The line flow limit is set to 100 MW. The cost coefficients, Bus data, Line
data for 5 bus shown in Table XIII, XIV, XV
TABLE XIII
GENERATOR COST COEFFICIENT FOR 5-BUS SYSTEM

TABLE XIV
BUS DATA FOR 5 BUS

TABLE XV
LINE DATA FOR 5-BUS SYSTEM

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Biographies
Jiangang Yao received the B.S., M.S., and Ph.D. degrees electrical engineering from Hunan
University, Hunan, China, in 1981, 1983, and 1987, respectively. Currently, he is Professor at the
Department of Electrical Engineering, Hunan University, Hunan, China. His research interests include
power system analysis, power system optimization, FACTS, power markets
Thanh Long Duong received the B.S. and M.S., degrees Electric Power System from Ho Chi Minh
University of Technology Vietnam, in 2003, 2005 respectively. Currently, he is a Ph.D. student at
Department of Electrical Engineering, Hunan University, Hunan, China. His research interests include
power system operation, FACTS, and power markets.
Viet Anh Truong received the B.S., M.S., and Ph.D. degrees Electric Power System from Ho Chi
Minh University of Technology Vietnam, in 1994, 1999, and 2004, respectively. Currently, he is an
Ph.D at the division of Electric Power Systems, Ho Chi Minh University of Technology, Vietnam. His
research interests include issues related to power system stability, reliability, FACTS, power markets

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