1 Optimal Placement and Sizing of FACTS Devices to Delay Transmission Expansion arXiv:1608.04467v1 [math.OC] 16 Aug 2016 Vladimir Frolov, Priyanko Guha Thakurta, Scott Backhaus, Janusz Bialek Fellow, IEEE and Michael Chertkov Senior Member, IEEE Abstract—The Transmission System Operators (TSOs) plan to reinforce their transmission grids based on the projected system congestion caused by the increase in future system load, amongst other factors. However, transmission expansion is severely limited in many countries, and especially in Europe, due to many factors such as clearance acquisitions. An alternative is to use Flexible Alternating Current Transmission System (FACTS) devices, thus allowing to delay or avoid much more expensive transmission expansion. These devices are capable of utilizing the existing transmission grid more flexibly. However, the locations and sizing of future FACTS devices must be carefully determined during the planning phase in order to avoid congestion under many representative scenarios of the projected economic growth (of loads). This paper proposes an optimization approach, based on AC Power Flows, to determine suitable locations and sizes of series and shunt FACTS devices. Non-linear, non-convex and multiple-scenario based optimization is resolved via efficient heuristics, consisting of a sequence of Quadratic Programming. Efficiency and scalability of the approach is illustrated on IEEE 30-bus and 2383-bus Polish systems. Index Terms—Non-convex Optimization, Optimal Investment Planning, Optimal Power Grid Reinforcement, Series Compensation Devices, Static VAR Compensation Devices. N OMENCLATURE Parameters: Nl Nb M Number of power lines in operation Number of buses in the system Number of segments representing each load duration curve N Number of scenarios representing each segment Minimum (maximum) loading level α (α) αi (αi ) Minimum (maximum) loading level for segment i pi = wi Occurrence probability of a segment Vector of initial line inductances x 0 ∈ RN l P G (P G ) ∈ RNb Vector of maximum (minimum) active power generator outputs QG (QG ) ∈ RNb Vector of maximum (minimum) reactive power generator outputs PD0 (QD0 ) ∈ RNb Vector of active (reactive) power demands S ∈ R2Nl Vector of line apparent power limits V (V ) ∈ RNb Vector of maximum (minimum) allowed voltages CSC ∈ R Cost per Ohm of a series FACTS device CSV C ∈ R Cost per MVAr of a shunt FACTS device Ny ∈ R Service period of the system Optimization variables: V ∈ RN b θ ∈ RN b PG ∈ RNb x ∈ RNl ∆x ∈ RNl ∆Q ∈ RNb l0 ∈ RNb Vector of bus voltage magnitudes Vector of bus voltage angles Vector of generator active power injections Vector of line inductances modified by SC devices Vector of series FACTS capacities Vector of shunt FACTS capacities Vector of active and reactive loads for the base configuration Other variables: Peij ∈ R2Nl e ij ∈ R2Nl Q Vector of all active power injections into lines Vector of all reactive power injections into lines I. I NTRODUCTION Power system planning and operation are terms which encompass an entire range of activities performed by different stakeholders. As shown schematically in Figure 1 the planning activities fall under categories of long, medium and short term investments ranging from 15 years to a season. High penetration of variable renewable energy output coupled with significant increase in load uncertainty result in frequent overloads of the system. To mitigate the overloads TSOs have to plan for counter measures. Transmission expansion within the congested zones is one suitable option. However, building new transmission lines is both expensive and politically challenging. Moreover, some congestion management options like generation re-dispatch and demand side management come at a significant extra cost to the TSOs in a decentralized, e.g. European, environment. Hence, TSOs are interested to find less expensive alternatives for their long term planning strategies. As argued in [2], [3] Flexible Alternating Current Transmission System (FACTS) is a technology capable to offer the highly desirable and affordable alternative to traditional network expansion. This strategic (grid reinforcement) use of the FACTS devices comes in addition to many (more traditional) operational benefits. This technology offers to control power flows [4]–[8], improve voltage stability [9]– [11], damp power system oscillations [12]–[15] and improve 2 Operational Planning Planning Operations Real-Time Operation Near Real-Time Operation Short-Term Miliseconds, Seconds Minutes, Hours, Days Months, Year (1) Mid-Term Long Term Years (2-5) Market Forces Years (5-15) Regulation, Legislation Uncertainties in variable production and demand; External Forces; Vulnerabilities (physical and cyber) Severe Emergency Conditions requiring Automatic and Self-Healing Control and Protective Actions Fig. 1. Non-Severe Emergency Conditions requiring Coordinated Operator Assited Control and Optimized Re-Dispatch and Balancing Steady State Operating Conditions requiring Preventive Control and Power Flow Optimization Resource Adequacy and Grid Development Gaps requiring Coordinated Grid Planning Optimization Long-term goals for “green” resource adequacy and grid development optimization requiring Coordinated Grid Planing Time line for operations and planning [1] small signal stability [16], [17]. Note that the (traditional) operational use of the FACTS devices comes at a near-zero cost to the TSOs, as many of those devices are already installed and operated by them. In a long term planning process TSOs make decisions of investing in expanding/upgrading the existing transmission infrastructure. The installation of FACTS devices can and should be incorporated into this planning. This can be done in a principal way in which the locations and sizing of the new devices are resolved via optimization. In other words, placement of the FACTS devices must be effective to manage system congestion considering uncertainties that would arise during the planned time period. The proposed approach in this paper builds on a diverse set of prior attempts to pose and resolve the problem of optimal FACTS placement and sizing. Several research papers addressed the optimal location for effective FACTS placement in a transmission system. Authors of [18] have developed a FACTS placement toolbox to find optimal locations and sizing parameters for multi-type FACTS devices in large power systems based on a genetic algorithm. It is concluded that the toolbox is effective and flexible enough for analyzing a large number of scenarios with mixed types of FACTS to be optimally sited at multiple locations simultaneously. Wibowo et al. [19] have proposed a method for optimal location of FACTS devices which is market-based and as such allowing to account for annual cost and benefits associated with FACTS installations. Models of FACTS shuntseries controllers along with a multi-objective optimization methodology to find their optimal locations were developed in [20]. Galloway et al. [21] have proposed two methods for finding optimal location of FACTS devices considering variations in demand and renewable generation output. These authors proposed techniques based on the Monte Carlo simulation to determine locations of the highest benefit in terms of the conventional generation cost savings. Placement of FACTS devices was discussed in [22]–[25], while issues related to FACTS operations in the context of the electricity market and stochastic framework were also addressed in [26]–[31]. Van Hertem et al. [32] have discussed investment, planning, scheduling and operations using already installed power flow controlling devices (PFCs), including Phase Shifting Transformers (PSTs) and High Voltage Direct Current (HVDC), on a realistic example of the Belgian grid. To the best of our knowledge, no prior work has addressed the problem of AC-aware and overload-free optimal placement and sizing of FACTS devices to guide TSOs on possible cheaper alternative to grid expansions. In this paper, a method is proposed to find suitable locations for placing FACTS devices in power systems and their required installed capacities (sizing) in a robust way to future uncertainties due to load increase and integration of renewables. Therefore, main contributions of this paper can be summarized as follows: 1) Planning methodology to install new FACTS devices is proposed. The methodology is developed to guide TSOs on their long term strategies. In particular, the developed methodology can be used to delay or avoid much more expensive investments involving transmission expansion. Note that the proposed framework is universal, and as such it accounts for optimal operational (day ahead or real time) use of the newly installed FACTS devices. 2) The proposed methodology is mathematically stated as an optimization problem, the outputs of which are optimal FACTS placements and capacities accounting for load growth and associated uncertainty. The uncertainty is modeled via a scenario based approach. Full AC power flow formulation is embedded into our optimization heuristics, consisting of a sequence of Quadratic Programming (QP) steps. 3) It is observed that the developed methodology scales. The developed approach is first analyzed on the IEEE 30-bus system and the scalability of our approach is 3 25,000 20,000 α MW illustrated on the Polish system consisting of 2383buses. 4) The resulting solutions are sparse, i.e. . The sparsity is promoted by the l1 -norm regularized installation cost. The paper is organized as follows. The basic optimization problem is stated and discussed in Section II. The formulation is extended in Section III to account for load growth and associated uncertainty. Our optimization heuristic scheme (sequence of QPs) is described in Section IV. The complete methodology is summarized in Section V. Section VI presents results of our numerical experiments. Section VII finally draws the conclusions of the paper. i = 1...M ; pi = wi 15,000 10,000 α 5,000 0 II. O PTIMIZATION FRAMEWORK TO INCLUDE FACTS IN LONG TERM PLANNING In this paper, the prime focus lies on finding optimal locations and sizes to install series and/or shunt FACTS devices. Multiple loading configurations/scenarios are accounted within the proposed optimization framework. The objective function in the optimization consists of the capital investment term and the system operational costs depending on the planning period (optimization horizon). Capacities and operational settings (different for different scenarios, but all under respective capacities) of the newly installed Series Capacitors (SCs) and Static Var Compensators (SVCs) are among the optimization variables. (However, already installed series and shunt FACTS devices can also be included within the framework.) The optimization problem is stated as follows: X Ta ∗Ca (P (a) ) min CSC ∆x1 +CSV C ∆Q1 +Ny 4x,4Q a=1..N (1) subject to: (a) x(a) = x0 + 4x(a) (a) PG (a) QG (a) P (a) Q = = = f (V = g(V (a) PG ≤ Q(a) G (a) PD0 + P (a) (a) QD0 + Q(a) (a) (a) ≤ ,θ (a) ,θ − 4Q ≤ 4Q V (a) ≤V (a) ≤V (a) (a) [Peij ]T [Peij ] + 75% 100% Piece-wise step function approximation of the load duration curve. (2) bounds actual line inductances, which are adjusted according to the operational value of installed series compensation for each scenario, within their respective installed capacities (represented by (9)). (3) and (4) represent active and reactive power balances at each bus of the network. The elements of vectors PG (QG ) and PD0 (QD0 ) are zeros for buses containing no generators or loads respectively. (5) and (6) represent the net active (P ∈ RNb ) and reactive (Q ∈ RNb ) power injections at the system buses. The term ∆Q expresses shunt compensation by SVC adjusted to a scenario bounded by respective installed capacities (represented by (10)). The limits on active and reactive power generation by the generators are represented by (7) and (8). Finally, voltage and thermal line flow constraints are represented by (11) and (12). ∀a (3) III. ACCOUNTING FOR UNCERTAINTY + ∆Q ∀a (4) (a) ) ∀a (5) ) ∀a (6) ∀a (7) ∀a (8) ∀a (9) ∀a (10) ∀a (11) ∀a (12) Uncertainty related to the system load growth over the considered planning phase is dealt with through scenario sampling. Standard power system load growth over a large period of time is utilized via the load duration (LD) curve [35]. The LD curves are chosen to be piece-wise step functions. Loading scenarios are sampled from the probability distributions associated with the yearly LD curves. Figure 2 illustrates such a load duration curve and its approximation. Each scenario is characterized by different loading configurations, occurrence probability, network topology and configuration of loads (active and reactive power consumption). The scenarios may include sampled (typical) configurations and/or contingency (rare) configurations projected for different levels of loading. For the test cases and the projected level of stress considered, ACOPF always remain feasible if line constraints are ignored (there is enough generation capacity even for the stressed cases). Depending on the sampled scenario, 3 situations may arise. 1) ACOPF is feasible and congestion price is zero (low loading level). 2) ACOPF is feasible and congestion price is positive (higher loading level representing peak conditions). (a) (a) ,x ≤ 4x (a) 50% (2) (a) (a) PG ≤ P G (a) (a) QG ≤ QG (a) − 4x ≤ 4x 25% ∀a ,x (a) Fig. 2. 0% ≤ 4Q (a) e (a) ]T [Q e (a) ] [Q ij ij ≤ (S (a) 2 ) The objective function in (1) consists of three terms. The first two, sparsity promoting [33], [34] terms, express the capital investment costs of the installation of the two types of FACTS devices. The third term stands for the operational cost where the summation is over all the scenarios (∀a is a shortcut for, ∀a = 1, · · · , N ) accounting for respective occurrence probabilities multiplied by the number of years (service period). The optimization stated is, therefore, an operational aware planning. 4 TABLE I I MPLEMENTATION OF THE LD CURVE SCHEME IV. M ETHODOLOGY OF THE O PTIMIZATION H EURISTICS i wi αi σ 1 2 3 4 5 6 5,50 19,50 25,00 25,00 18,80 6,20 0,940 0,845 0,775 0,685 0,590 0,51 0,064 0,041 0,045 0,080 0,068 0,078 The optimization problem (1)-(12) is difficult due to nonlinearity of the thermal constraints (12) and non-linearity and non-convexity of the power balance constraints (3) and (4). In order to solve the optimization problem, an efficient linearization based heuristics is developed. Note that the linearization is done analytically, which is critical for the algorithm scalability. The linearization is illustrated for Eq. (12), which is replaced by: 3) ACOPF is infeasible mainly due to congestion of lines but system has enough generation capacity. ACOPF without apparent power limits on lines is feasible (overloaded conditions which are possible in the future). The aim of planning installation of FACTS devices at the right locations with their corresponding capacities is to reduce generation cost for point 2, and to improve or extend feasibility domain of the system for the point 3. Extra years of service can hence be added to the existing grid by making it more flexible, thereby allowing to delay investments on new lines and generators. A. Scenarios sampling for each segment F (V, θ, x) = |S(V, θ, x)|2 ≤ F = S 2 (19) The solution methodology consists in solving a sequence of QPs, built by analytic linearization of Eqs. ((3),(4),(12)) around the current state: ∂F ∂F ∂F ? (20) , , ](y ) × (y − y ? ) ≤ F ∂V ∂θ ∂x where, y ? = (V ? , θ? , x? ) are the state variables representing voltage magnitudes and phases at the buses connected to a given line, and inductance of a line, respectively, for the current state. F (y ? ) + [ The loading level αi for a segment i is represented by: αi + αi (13) 2 Future loading configurations are obtained from the base case by re-scaling all active and reactive loads by αi uniformly. The resulting vector of loads for a segment is thus given by: αi = li0 = αi × l0 (14) Loading configurations are generated, for each segment i and each j = 1..N , through modification of initial li0 . It is done by adding Gaussian correction to each load with zero expected value and a respective standard deviation: lij = li0 + N (0, σli0 ) (15) pji (16) = wi /N (probability of a given scenario) where, σli0 is given by: αi − αi × li0 αi = σ × li0 σli0 = (17) (18) This scheme accounts for variations in the distribution of loads, thereby simulating power system behavior during an extended period of time in the future. B. Implementation In our simulations LD curves are modeled with M = 6 segments. Table I shows parameters used to simulate future system loading. In all simulations α = 1 corresponds to α. For the first year α is taken to be 3% from AC-OPF infeasibility. Yearly load growth (β) is in the 0.5% − 1.5% range. V. O PTIMIZATION A LGORITHM The sequence of QP optimizations with linearized constraints are solved using an iterative algorithm in order to find a solution for optimization problem (1)-(12). The flowchart of the algorithm is shown in Figure 3. A. General description If some of the constraints (1)-(12) are violated the initial state of the system lies outside of the feasible domain (A) defined by the constraints (2)-(12). At each iteration within the sequence the nonlinear constraints are linearized around a current state, thus resulting in the construction of the domain (B). CPLEX optimization solver [36] is used to evaluate the resulting QP optimization with linear constraints over (B). Replacement of non-convex and non-linear (A) by convex and linear (polytope) (B) is achieved in a number of iterations, needed to get from the initial state outside of the domain (A) to a point which lies inside. The algorithm is terminated when either the preset target precision or the maximum number of iterations is reached. B. Details of the algorithm Flowchart of the algorithm is shown in Figure 3. Brief description of the flowchart is as follows: 1) Each load configuration for each scenario is given. 2) OPF is solved for each scenario without considering any line thermal limits. Solutions of the OPF define the initial states for each scenarios. 3) Linearization of the thermal and power balance constraints over the current state for each scenario is applied and QP is solved. 5 Given Load Configurations OPFs without Thermal Limits Define Initial States Linearize Conditions & Solve QP Obtain and Update States 1 } 2 3 4 5 Next Iteration Yes tion is implemented if the objective was not improved during the iteration. 2) As the operational cost increases with the system size more investments can be made. In such cases linearization around current state becomes less accurate and solving AC-PF (back projection onto nonlinear equations) may become infeasible. Controlling the step sizes either leads to infeasibility of the QP step or infeasibility of the AC-PF step via many small investments in the system. Here, the practical solution is to adjust installation prices in order to find the best solution (in terms of the average operational cost). The investment cost is then recalculated. 3) The challenge of visualizing a large system is met by automatic visualization tools developed within this framework. VI. C ASE STUDIES Violations? No Stop Fig. 3. Flowchart of the iterative algorithm 4) AC Power Flow (AC-PF) is solved to update the state found at the previous step. This is done to prepare a feasible solution for the next iteration/step. 5) Iterations are performed until no constraints remain violated. Otherwise the iterations are terminated when either target precision or allowed number of iterations is reached. The key idea of the algorithm is to maintain the physical state of the system after each iteration. Note that the iterative loop, including linearization and following solution of the respective QP optimization and back projection onto nonlinear power balance equations, allows to maintain a feasible solution at each step. C. Scalability One of the major contributions of this paper is in demonstrating the scalability of the scheme in practice, i.e. the ability to resolve problems over realistic (consisting of thousands of buses) power transmission systems efficiently. The challenges faced to meet the scalability target and the way of addressing them are summarized below: 1) All controllable parameters of the system being adjustable causes degeneracy of the linearized problem. In case of a loopy network, one has the flexibility in redistributing controllable voltages, active and reactive powers. In order to resolve the degeneracy, soft controllable constraints for reactive power dispatch are introduced at each QP step. The step size is reduced adaptively as the algorithm advances. The Q-step reduc- Developed approach is demonstrated on IEEE 30-bus and 2383-bus Polish systems, both available within the Matpower [37] software package. (Winter peak configuration is considered as the base case for the Polish system.) The simulations are performed on Intel i7 2600K PC with 12 GBs of system memory. Very powerful solvers are available for solving convex optimization problems with linear constraints. Interior point algorithm of the CPLEX solver [36] is used as a subroutine to solve the QP proposed in this paper. A. IEEE 30-bus system 1) Scenario dependent system settings: At first, the performance of the multi-scenario solver is tested and illustrated accounting (simultaneously) for 10 scenarios over the course of a year. The scenarios are generated with α = 1.1 and σ = 0.1. Notice that some of the scenarios are originally OPF infeasible. In this experiment the scenarios are not sampled from LD curve. The aim of this preparatory test is to demonstrate novelty and flexibility of the developed approach in terms of adjustment (and convenient visualization) of all the controllable (optimization) degrees of freedom. The optimization solution suggests to install an SVC device at bus 8 and a SC device on the transmission line connecting buses 6 and 8. These installations allow to resolve AC-OPF infeasibility and reduce generation cost for the 10 generated scenarios. The optimal installed capacity of the SVC is 6.98 MVAr and one of the SC corresponds to the 51,90 % of compensation. The resulting optimal placement of the devices is sparse. The proposed investment cost is about 540k USD. To illustrate the operational perspective of the optimal placement Table II shows optimal settings of the two devices for each of the 10 operational scenarios. Dynamics of the algorithm is illustrated in Figure 4. The left y-axis of the figure illustrates gradual (but generally nonmonotonic) reduction of the line overloads whereas the right figure shows convergence of the total cost (value of the objective function). As clear from the Figure the multi-scenario solver requires approximately 20 iterations to converge. 6 TABLE II O PTIMAL SETTINGS OF THE INSTALLED FACTS FOR EACH SCENARIO Scenario (+ for ACOPF feas) 1 (-) 2 (+) 3 (+) 4 (-) 5 (-) 6 (+) 7 (-) 8 (-) 9 (-) 10 (+) SC optimal settings (%) 51,90 -1,52 11,91 51,90 51,90 15,40 47,03 14,86 16,40 7,23 SVC optimal settings (MVAr) 6,98 6,98 6,98 6,98 6,98 6,98 6,98 6,98 6,98 6,98 16 6.4 14 6.3 6.2 Scn 1 Scn 2 Scn 3 Scn 4 Scn 5 Scn 6 Scn 7 Scn 8 Scn 9 Scn 10 Total cost 10 8 6 4 2 6.1 6 5.9 Total cost (M$) Overload value (MVA) 12 5.8 5.7 0 2 Fig. 4. 4 6 8 10 12 14 Iterations 16 18 20 22 24 5.6 Fig. 5. Optimal solution for IEEE-30 bus system over 10 years planning horizon. One SVC (solid dot) and one SC (dotted line) are installed. TABLE III C OMPUTATION TIMES Illustration of the algorithm dynamics for 10 scenarios. System Based on this first test it can be concluded that the proposed optimization approach is powerful and successful. An improvement is achieved not only through installation of FACTS devices but also via smart use of the flexibility of these devices combined with proper utilization of all other adjustable equipments available within the network. This illustration clearly indicates that the proposed methodology can be used by the TSOs not only for planning but also to calculate optimal settings of existing and/or new FACTS devices during dayahead operational planning and/or real-time operation. 2) Planning for multiple years: The planning period is set to 10 years and the number of scenarios considered per year is 16. β is considered to be 1.5% per year. The resulting optimal solution allows to resolve AC-OPF infeasiblility (observed otherwise under some scenarios) and then to reduce system congestion in the future. The optimal solution consists of an installation of an SVC device at bus 8 with the capacity of 5.78 MVAr and also an installation of an SC device at the line between buses 6 and 8 with a capacity of 1 %. The proposed investment is 30k USD and the average economy is 1.8 $/hour (0.43 %). Figure 5 shows the resulting optimal investment solution. B. 2383-bus Polish system In the tour-de-force experiment with the realistic (in size) Polish system, experimentation is performed with 1 year and 10 years of the planning horizon. The scenarios for the Polish case are generated according to LD curve approach explained in Section III. 30bus 30bus Polish Polish No. of scenarios 10 160 4 16 No. of iterations 25 25 15 15 Time (sec) 28.6 260.2 591.6 10397.0 1) Planning for 1 year: Simulation is done for 4 ACOPF feasible scenarios sampled from the top 2 segments of the LD curve for the first year (see Table I, i = 1, 2). For lower loading segments congestion price is 0 and no investments are needed. The optimal investment found is shown in Figure 6a. 5 SCs are built to reduce congestion in the system. Average congestion price is 1446 $/hour and the average generation cost economy is 1504 $/hour. 2) Planning for 10 years: This simulation is done with 16 sampled scenarios (2 out of 16 are ACOPF infeasible) for 10 years with assumed yearly loading growth equal to 0.5 %. The optimal investment found is shown in Figure 6b. 2 SCs and 1 SVC need to be built in order to reduce congestion in the system and to improve feasibility domain for future operations when loading increases. Average congestion price is 5738 $/hour and average generation cost economy is 3369 $/hour. Table III shows computational efforts of the proposed approach for the two considered systems. VII. C ONCLUSIONS In this manuscript, a new optimization framework for planning of placement and sizing of FACTS devices is proposed. 7 The approach takes into account non-linear power flow equations. The most important features of the newly developed framework include, scalability, allowing to resolve congestion over practical (thousands of buses) size transmission systems, and also the ability to resolve multiple scenarios simultaneously. The optimization can be considered as generalizing standard AC-OPF over multiple scenarios with an additionally added cost of operation (over a time horizon) and the cost of installation. The optimization accounts for both installation and operations, allowing the installed devices to adjust operationally to a particular scenario within the bounds set by the installed capacity. Many interesting cases are experimented. In all the cases considered the output (optimal placement) is spatially sparse also showing strong non-locality (in the sense that placement of a device may resolve congestion in a distant region of the grid). It is also observed that under highly loaded conditions FACTS devices are beneficial in reducing the total cost of generation. Optimal installation of the devices helps to resolve infeasibilities that are projected to become even more severe in the future. Main technical achievement reported in this paper is the development of efficient heuristics for solving the non-linear and non-convex optimization. The developed methodology builds a convergent sequence of convex optimizations with linear constraints. Each constraint is represented explicitly (a) 1 year horizon. Capacities of SCs from left to right: through exact analytical linearization of the original nonlinear 35.6 %, 24.4 %, 100 %, 9.24 %, 100 %. constraints (e.g. representing power flows and apparent power line limits) over all the degrees of freedom (including FACTS corrections) around the current operational point. In order to represent uncertainty in the projected growth of the system (loads) a custom scenario sampling is introduced. Practicality of our approach for resolving investment planning is illustrated on the IEEE 30-bus and 2383-bus Polish systems. 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