Congestion management using demand response and FACTS devices

► We proposed an approach for congestion management using a combination of demand response and FACTS devices. ► We analysed the effects of the presented approach on congestion management cost. ► This method optimizes the congestion management cost and also total cost of market. ► The combination of two congestion management alternatives is a key issue presented in this approach. 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.