An Iterative Approach to FACTS Set Point Optimization in Day-Ahead Generation Scheduling

Day-ahead generation scheduling is a typical business process of regional transmission organizations and vertically integrated utilities to make sure enough generation capacity is committed day-ahead to satisfy the load for the following day. Transmission equipment such as Flexible Alternating Current Transmission Systems (FACTS) is historically treated as non-dispatchable assets. However, co-optimizing FACTS set points with generation dispatch and leveraging grid controllability could be a viable way to improve economic efficiency of system operations. This paper applies FACTS optimization in the day-ahead generation scheduling process using an iterative linear programming approach to solve a bilinear programming problem of generation scheduling based on a DC load flow formulation. Simulation results will be presented to demonstrate generation dispatch combined with FACTS optimization in every hour could cut back congestion cost and considerably lower generation cost.