Optimal Power System Planning and Feasible Electricity Market Discovery for Efficient Operation of Pakistan National Grid/

Abstract

The electric power market and infrastructure, critical for the economic development of any country, face many challenges in developing countries. Both technical and economic interventions are necessary for mitigating these challenges and increasing reliability and efficiency of the power market and grid. This research addresses the imperative need for increasing efficiency, stability, and observability of power infrastructure through the strategic integration of Flexible AC Transmission Systems (FACTS) and Phasor Measurement Units (PMUs), as technical solutions. In contrast, Locational Marginal Pricing (LMP) is proposed as an economic intervention to achieve equitable and efficient pricing. In many developing countries, the absence of modern devices like PMUS and FACTS devices leaves the national grid vulnerable to power stability and efficiency issues, necessitating a comprehensive solution. The research ensures optimal observability of the ever-evolving dynamics of power systems through the PMUs placement. Optimal PMU placement is achieved via Binary Integer Linear Programming (BILP). The study presents a Multi Criteria Decision Making (MCDM) approach for Multiphase PMU placement. Furthermore, this thesis introduces an approach to address this challenge by proposing the strategic installation of FACTS devices namely Shunt VARs Compensators (SVCs) and Thyristor-Controlled Series Compensators (TCSCs). Line Stability Index (Lmn) and Voltage Collapse Proximity Index (VCPI) guide the selection of ideal locations for TCSCs and SVCs, respectively, while Particle Swarm Optimization (PSO) determines their optimal rating for minimizing both operational and capital costs. These were applied to two models of the Pakistani national grid - the grid existing in 2018 and forecast for 2025. The 2018 and 2025 models, with 3651 and 6007 nodes respectively, represent the great extent and rapid expansion of national grid in Pakistan. Results of optimal FACTS and PMU placement on the extensive Pakistani grid were not found in literature review. Although numerous optimization models have been extensively reported for standard test systems, successive FACTS deployment on evolving national grids with a multi-year time interval was identified as a research gap. After a thorough investigation of the optimal FACTS and PMU deployment methodologies, this research highlights the significance of LMPs in reflecting equitable and efficient energy pricing, emphasizing their role in calculating ZMPs to represent geographical price differences within the electricity market of Pakistan based on Optimal Power Flow (OPF) simulations. The National Electric Power Regulatory Authority (NEPRA) establishes separate tariffs for each Distribution Company (DISCO). This research proposes LMP model as alternative pricing regime to the currently applicable regulated prices in Pakistan. The thesis concludes by emphasizing the practical implications of the proposed methodologies and suggests avenues for future research, including the incorporation of grid-scale battery energy storage systems in the national grid of Pakistan.