Congestion management using demand response and FACTS devices

An approach is proposed for transmission lines congestion management in a restructured market environment using a combination of demand response (DR) and flexible alternating current transmission system (FACTS) devices. To achieve this aim, a two-step market clearing procedure is formulated. In the first step, generation companies bid to the market for maximizing their profit, and the ISO clears the market based on social welfare maximization. Network constraints including those related to congestion management are represented in the second step of the market-clearing procedure. The paper develops, using mixed integer optimization technique, a re-dispatch formulation for the second step in which demand responses and FACTS device controllers are optimally coordinated with conventional generators.