  This research proposes an incremental welfare consensus method based on
flexible alternating current transmission systems (FACTS) and demand response
(DR) programs to control transmission network congestion in order to increase
the penetration of wind power. The locational marginal prices are used as input
by the suggested model to control the FACTS device and DR resources. In order
to do this, a cutting-edge two-stage market clearing system is created. In the
first stage, participants bid on the market with the intention of maximizing
their profits, and the ISO clears the market with the goal of promoting
societal welfare. The second step involves the execution of a generation
re-dispatch issue in which incentive-based DR and FACTS device controllers are
optimally coordinated to reduce the rescheduling expenses for generating firms.
Here, a static synchronous compensator and a series capacitor operated by a
thyristor are used as two different forms of FACTS devices. A case study on the
modified IEEE one-area 24-bus RTS system is then completed. The simulation
results show that the suggested interactive DR and FACTS model not only reduces
system congestion but also makes the system more flexible so that it can
capture as much wind energy as feasible.
