An algorithm for cost optimization of PMU and communication infrastructure in WAMS

•A novel optimal PMU placement solution taking into account the influence of the communication infrastructure cost.•A topological analysis algorithm based on the Variable Neighborhood Search heuristic.•Our results show the flexibility, effectiveness and scalability of the proposed methodology when compared with recent research presented in the literature. Power system state estimation relies increasingly on PMU measurements to effectively control and monitor growing and stressed transmission networks which are also affected by transient and dynamic events. High PMU cost has motivated optimal PMU placement solutions but recent works have shown the effect of communication infrastructure cost in PMU configuration. In this paper, we present a new method for the design of Wide Area Measurement Systems. A topological analysis algorithm based on the Variable Neighbourhood Search heuristic is proposed and tested in several networks, including the common IEEE test networks and the 5804-bus Brazilian transmission system. Our results show the flexibility, effectiveness, and scalability of the proposed methodology when compared with recent research presented in the literature.