10. Risk Averse Security Constrained Stochastic Congestion Management

In this chapter an innovative probabilistic security constrained congestion management (PSCCM) approach is proposed, considering the probable outage of main elements of power systems such as transmission lines, generation units as well as the uncertainty of wind power generation. The proposed PSCCM approach aims to modify the base-case operation point of the system in such a way that if any severe contingency happens, the cost of restoration of normal operation in the post-contingency state will be minimized. Hence the proposed approach is a two stage stochastic programming problem, in which both of the base-case (first stage) and all probable severe post-contingency states (second stage) are considered together. The control actions performed on the base-case operation point are called preventive controls, whereas those activated following occurrence of contingencies are corrective controls. Also, in order to reduce the risks associated with economic decisions in the proposed stochastic model, a proper risk index called conditional value at risk (CVaR) is utilized, which facilitates lower cost corrective controls in some post-contingency states. The proposed PSCCM method is examined on the IEEE RTS 24-bus test system, and the obtained numerical results demonstrate its applicability for optimal operation of practical power systems.