Transmission pricing and congestion management are two important aspects of modern power sectors working under a deregulated environment or moving towards a deregulated system (open access) from a regulated environment. The transformation of power sector for open access environment with the participation of private sector and potential power suppliers under the regime of trading electricity as a commodity is aimed at overcoming some of the limitations faced by the vertically integrated system. It is believed that this transformation will bring in new technologies, efficient and alternative sources of power which are greener, self sustainable and competitive. There is ever increasing demand for electrical power due to the changing life style of human beings fueled by modernization and growth. Augmentation of existing capacity, siting of new power plants, and a search for alternate viable sources of energy that have lesser impact on environment are being taken up. With the integration of power plants into the grid depending upon the type, loca- tion and technology used, the cost of energy production also differs. In interconnected networks, power can flow from one point to other point in infinite number of possible paths which is decided by the circuit parameters, operating conditions, topology of network and the connected loads. The transmission facility provided for power transfer has to recover the charges from the entities present in the network based on the extent of utilization. Since power transmission losses account for nearly 4 to 8% of the total generation, this has to be accounted for and shared properly among the entities depending upon the connected generation/load. In this context, this thesis aims to evaluate the shortcomings of existing tracing methods and proposes a tracing method based upon the actual operating conditions of the network taking into account the network parameters, voltage gradient among the connected buses and topology of the network as obtained by the online state estimator/load flow studies. The concept proposed is relatively simple and easy to implement in a given transactional period. The proposed method is compared against one of the existing tracing technique available in literature. Both active and reactive power tracing is handled at one go. The summation of partial contributions from all the sources in any given line of the system always matches with that of the respective base case ow. The AC power flow equations themselves are nonlinear in nature. Since the sum of respective partial flows in a given branch is always equal to the original ow, these are termed as virtual flows and the effect of nonlinearity is still unknown. The virtual flows in a given line are complex in nature and their complex sum is equal to the original complex power flows as in the base case. It is required to determine whether these are the true partial flows. To answer this, a DC equivalent of the original AC network is proposed and is called as the R - P equivalent model. This model consists of only the resistances as that of original network (the resistances of transformers and lines neglecting the series reactance and the shunt charging) only. The real power injections in a AC network i.e. sources into respective buses and loads (negative real power injections) are taken as injection measurements of this R P model and the bus voltages (purely real quantities) are estimated using the method of least squares. Complex quantities are absent in this model and only real terms which are either sums or differences are present. For this model, virtual flows are evaluated and it has been verified that the virtual real power contributions from sources are in near agreement with the original AC network. This implies that the virtual flows determined for the original network can be applied for day-to-day applications. An important feature of the virtual flows is that it is possible to identify counter ow components. Counter flow components are the transactions taking place in opposite direction to the net flow in that branch. If a particular source is produces counter flow in a given line, then it is in effect reducing congestion to that extent. This information is lacking in most of the existing techniques. Counter flows are useful in managing congestion. HVDC links are integrated with HVAC systems in order to transfer bulk power and for the additional advantages they offer. The incremental cost of a DC link is zero due to the closed loop control techniques implemented to maintain constant power transfer (excluding constant voltage or constant current control). Consequently, cost allocation to HVDC is still a problem. The proposed virtual power flow tracing method is extended to HVAC systems integrated with HVDC in order to determine the extent of utilization of a given link by the sources. Before evaluating the virtual contributions to the HVDC links, the steady state operating condition of the combined system is obtained by per-forming a sequential load flow. Congestion is one of the main aspects of a deregulated system, and is a result of several transactions taking place simultaneously through a given transmission facility. If congestion is managed by providing pricing signals for the transmission usage by the parties involved. It can also be due to the non-availability of transmission paths due to line outages as a result of contingencies. In such a case, generation active power redispatch is considered as a viable option in addition to other available controls such as phase shifters and UPFCs to streamline the transactions within the available corridors. The virtual power flow tracing technique proposed in the thesis is used as a guiding factor for managing congestions occurring due to transactions/contingencies to the possible extent. The utilization of a given line by the sources present in the network in terms of real power flow is thus obtained. These line utilization factors are called as T-coefficients and these are approximately constant for moderate increments in active power change from the sources. A simple fuzzy logic based decision system is proposed in order to obtain active power rescheduling from the sources for managing network congestions. In order to enhance the system stability after rescheduling, reactive power optimization has life systems to illustrate the proposed approaches. For secure operation of the network, the ideal proportion of active power schedule from the sources present in the network for a given load pattern is found from network [FLG] matrix. The elements of this matrix are used in the computation of static voltage stability index (L-index). This [FLG] matrix is obtained from the partitioned network YBUS matrix and gives the Relative Electrical Distance (RED) of each of the loads with respect to the sources present in the network. From this RED, the ideal proportion of real power to be drawn by a given load from different sources can be determined. This proportion of active power scheduling from sources is termed as Desired Proportion of Generation (DPG). If the generations are scheduled accordingly, the network operates with less angular separation among system buses (improved angular stability), improved voltage profiles and better voltage stability. Further, the partitioned K[GL] matrix reveals information about the relative proportion in which the loads should draw active power from the sources as per DPG which is irrespective of the present scheduling. Other partitioned [Y ′ GG] matrix is useful in finding the deviation of the present active power output from the sources with respect to the ideal schedule. Many regional power systems are interconnected to form large integrated grids for both technical and economic benefits. In such situations, Generation Expansion Planning (GEP) has to be undertaken along with augmentation of existing transmission facilities. Generation expansion at certain locations need new transmission networks which involves serious problems such as getting right-of-way and environmental clearance. An approach to find suitable generation expansion locations in different zones with least requirements of transmission network expansion has been attempted using the concept of RED. For the anticipated load growth, the capacity and siting generation facilities are identified on zonal basis. Using sample systems and real life systems, the validity of the proposed approach is demonstrated using performance criteria such as voltage stability, effect on line MVA loadings and real power losses.

The objective of an Energy Control Center (ECC) is to ensure secure and economic operation of power system. The challenge to optimize power system operation, while maintaining system security and quality of power supply to customers, is increasing. Growing demand without matching expansion of generation and transmission facilities and more tightly interconnected power systems contribute to the increased complexity of system operation. Rising costs due to inflation and increased environmental concerns has made transmission, as well as generation systems to be operated closure to design limits, with smaller safety margins and hence greater exposure to unsatisfactory operating conditions following a disturbance. Investigations of recent blackouts indicate that the root cause of most of these major power system disturbances is voltage collapse. Information gathered and preliminary analysis, from the most recent blackout incident in North America on 14th August 2003, is pointing the finger on voltage instability due to some unexpected contingency. In this incident, reports indicate that approximately 50 million people were affected interruption from continuous supply for more than 15 hours. Most of the incidents are related to heavily stressed system where large amounts of real and reactive power are transported over long transmission lines while appropriate real and reactive power resources are not available to maintain normal system conditions. Hence, the problem of voltage stability and voltage collapse has become a major concern in power system planning and operation. Reliable operation of large scale electric power networks requires that system voltages and currents stay within design limits. Operation beyond those limits can lead to equipment failures and blackouts. In the last few decades, the problem of reactive power control for improving economy and security of power system operation has received much attention. Generally, the load bus voltages can be maintained within their permissible limits by reallocating reactive power generations in the system. This can be achieved by adjusting transformer taps, generator voltages, and switchable Ar sources. In addition, the system losses can be minimized via redistribution of reactive power in the system. Therefore, the problem of the reactive power dispatch can be optimized to improve the voltage profile and minimize the system losses as well. The Instability in power system could be relieved or at least minimized with the help of most recent developed devices called Flexible AC Transmission System (FACTS) controllers. The use of Flexible AC Transmission System (FACTS) controllers in power transmission system have led to many applications of these controllers not only to improve the stability of the existing power network resources but also provide operating flexibility to the power system. In the past, transmission systems were owned by regulated, vertically integrated utility companies. They have been designed and operated so that conditions in close proximity to security boundaries are not frequently encountered. However, in the new open access environment, operating conditions tend to be much closer to security boundaries, as transmission use is increasing in sudden and unpredictable directions. Transmission unbundling, coupled with other regulatory requirements, has made new transmission facility construction more difficult. In fact, there are numerous technical challenges emerging from the new market structure. There is an acute need for research work in the new market structure, especially in the areas of voltage security, reactive power support and congestion management. In the last few decades more attention was paid to optimal reactive power dispatch. Since the problem of reactive power optimization is non-linear in nature, nonlinear programming methods have been used to solve it. These methods work quite well for small power systems but may develop convergence problems as system size increases. Linear programming techniques with iterative schemes are certainly the most promising tools for solving these types of problems. The thesis presents efficient algorithms with different objectives for reactive power optimization. The approach adopted is an iterative scheme with successive power-flow analysis using decoupled technique, formulation and solution of the linear-programmingproblem with only upper-bound limits on the state variables. Further the thesispresents critical analysis of the three following objectives, Viz., •Minimization of the sum of the squares of the voltage deviations (Vdesired) •Minimization of sum of the squares of the voltage stability L indices (Vstability) •Minimization of real power losses (Ploss) Voltage stability problems normally occur in heavily stressed systems. While the disturbance leading to voltage collapse may be initiated by a variety of causes, the underlying problem is an inherent weakness in the power system. The factors contributing to voltage collapse are the generator reactive power /voltage control limits, load characteristics, characteristics of reactive compensation devices, and the action of the voltage control devices such as transformer On Load Tap Changers (OLTCs). Power system experiences abnormal operating conditions following a disturbance, and subsequently a reduction in the EHV level voltages at load centers will be reflected on the distribution system. The OLTCs of distribution transformers would restore distribution voltages. With each tap change operation, the MW and MVAR loading on the EHV lines would increase, thereby causing great voltage drops in EHV levels and increasing the losses. As a result, with each tap changing operation, the reactive output of generators throughout the system would increase gradually and the generators may hit their reactive power capability limits, causing voltage instability problems. Thus, the operation of certain OLTCs has a significant influence on voltage instability under some operating conditions. These transformers can be made manual to avoid possible voltage instability due to their operation during heavy load conditions. Tap blocking, based on local measurement of high voltage side of load tap changers, is a common practice of power utilities to prevent voltage collapse. The great advantage of this method is that it can be easily implemented, but does not guarantee voltage stability. So a proper approach for identification of critical OLTC s based on voltage stability criteria is essential to guide the operator in ECC, which has been proposed in this thesis. It discusses the effect of OLTCs with different objectives of reactive power dispatch and proposes a technique to identify critical OLTCs based on voltage stability criteria. The fast development of power electronics based on new and powerful semiconductor devices has led to innovative technologies, such as High Voltage DC transmission (HVDC) and Flexible AC Transmission System (FACTS), which can be applied in transmission and distribution systems. The technical and economicalBenefits of these technologies represent an alternative to the application in AC systems. Deregulation in the power industry and opening of the market for delivery of cheaper energy to the customers is creating additional requirements for the operation of power systems. HVDC and FACTS offer major advantages in meeting these requirements. .A method for co-ordinated optimum allocation of reactive power in AC/DC power systems by including FACTS controller UPFC, with an objective of minimization of the sum of the squares of the voltage deviations of all the load buses has been proposed in this thesis. The study results show that under contingency conditions, the presence of FACTS controllers has considerable impact on over all system voltage stability and also on power loss minimization.minimization of the sum of the squares of the voltage deviations of all the load buses has been proposed in this thesis. The study results show that under contingency conditions, the presence of FACTS controllers has considerable impact on over all system voltage stability and also on power loss minimization. As power systems grow in their size and interconnections, their complexity increases. For secure operation and control of power systems under normal and contingency conditions, it is essential to provide solutions in real time to the operator in ECC. For real time control of power systems, the conventional algorithmic software available in ECC are found to be inadequate as they are computationally very intensive and not organized to guide the operator during contingency conditions. Artificial Intelligence (AI) techniques such as, Expert systems, Neural Networks, Fuzzy systems are emerging decision support system tools which give fast, though approximate, but acceptable right solutions in real time as they mostly use symbolic processing with a minimum number of numeric computations. The solution thus obtained can be used as a guide by the operator in ECC for power system control. Optimum real and reactive power dispatch play an important role in the day-to-day operation of power systems. Existing conventional Optimal Power Flow (OPF) methods use all of the controls in solving the optimization problem. The operators can not move so many control devices within a reasonable time. In this context an algorithm using fuzzy-expert approach has been proposed in this thesis to curtail the number of control actions, in order to realize real time objectives in voltage/reactive power control. The technique is formulated using membership functions of linguistic variables such as voltage deviations at all the load buses and the voltage deviation sensitivity to control variables. Voltage deviations and controlling variables are translated into fuzzy set notations to formulate the relation between voltage deviations and controlling ability of controlling devices. Control variables considered are switchable VAR compensators, OLTC transformers and generator excitations. A fuzzy rule based system is formed to select the critical controllers, their movement direction and step size. Results show that the proposed approach is effective for improving voltage security to acceptable levels with fewer numbers of controllers. So, under emergency conditions the operator need not move all the controllers to different settings and the solution obtained is fast with significant speedups. Hence, the proposed method has the potential to be integrated for on-line implementation in energy management systems to achieve the goals of secure power system operation. In a deregulated electricity market, it may not be always possible to dispatch all of the contracted power transactions due to congestion of the transmission corridors. System operators try to manage congestion, which otherwise increases the cost of the electricity and also threatens the system security and stability. An approach for alleviation of network over loads in the day-to-day operation of power systems under deregulated environment is presented in this thesis. The control used for overload alleviation is real power generation rescheduling based on Relative Electrical Distance (RED) concept. The method estimates the relative location of load nodes with respect to the generator nodes. The contribution of each generator for a particular over loaded line is first identified , then based on RED concept the desired proportions of generations for the desired overload relieving is obtained, so that the system will have minimum transmission losses and more stability margins with respect to voltage profiles, bus angles and better transmission tariff. The results obtained reveal that the proposed method is not only effective for overload relieving but also reduces the system power loss and improves the voltage stability margin. The presented concepts are better suited for finding the utilization of resources generation/load and network by various players involved in the day-to-day operation of the system under normal and contingency conditions. This will help in finding the contribution by various players involved in the congestion management and the deviations can be used for proper tariff purposes. Suitable computer programs have been developed based on the algorithms presented in various chapters and thoroughly tested. Studies have been carried out on various equivalent systems of practical real life Indian power networks and also on some standard IEEE systems under simulated conditions. Results obtained on a modified IEEE 30 bus system, IEEE 39 bus New England system and four Indian power networks of EHV 24 bus real life equivalent power network, an equivalent of 36 bus EHV Indian western grid, Uttar Pradesh 96 bus AC/DC system and 205 Bus real life interconnected grid system of Indian southern region are presented for illustration purposes.