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The operation and security management of deregulated power system with competitive electricity market environment is a typical task to the system operator due to its complexity under uncertainties. In order to enhance security level, unified power flow controller (UPFC) is proposed in this work. Under stressed conditions, the increment in market economic inefficiency is optimized with UPFC device support. The UPFC location and its parameters are controlled to minimize the total generation cost. The case studies are performed on IEEE 14-bus test system and the results validating the proposed approach for social welfare maximization in real time.

Impact of UPFC on Competitive Electricity Market Settlement in Deregulated Power System