A Sensitivity-Based Method for Optimal Placement of FACTS Devices

Flexible AC transmission system (FACTS) devices enable power flow control and enhance the transfer capability over the existing grid. Therefore, they can play a vital role in the future power grid, with high penetration of renewable energy resources. The effectiveness of FACTS deployment is highly dependent upon the placement of these devices in the transmission system. Optimizing the location of FACTS devices is a rather computationally challenging problem. This paper proposes a fast and effective method for the optimal FACTS placement problem based on sensitivities calculated using DC optimal power flow (DCOPF) shadow prices that are available from system operation data. The proposed method allows fast identification of the most effective potential FACTS deployment locations and facilitates more complicated analyses for optimal allocation. The effectiveness of the proposed method is tested with simulation studies conducted on modified RTS-96 and IEEE 300-bus test systems.