UPFC operation for the minimization of power production and delivery costs

This paper presents a new operation scheme of UPFCs to minimize power production and delivery costs. In the normal operation state of a power system, the production costs of active power can be minimized by economic power dispatch, and delivery costs due to transmission system loss can be also minimized by active power control of UPFC, incorporated with minimization of production cost. In order to determine amounts of active power reference of each UPFC required for the cost minimization, an iterative optimization algorithm based on the power flow calculation using the uncoupled UPFC model is proposed. For verification of the proposed method, intensive studies have been performed on a 5-bus sample system and a 10 unit 39-bus New England System equipped with UPFCs.