Microsoft Word - 15-3177_s_ETASR_V9_N6_pp4946-4955


Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4946 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

An Effective Method for Maximizing Social Welfare 
in Electricity Market via Optimal TCSC Installation 

 

Thanh Long Duong 

Faculty of Electrical Engineering Technology  
Industrial University of Ho Chi Minh City 

Ho Chi Minh City, Vietnam 
duongthanhlong@iuh.edu.vn 

Thuan Thanh Nguyen 

Faculty of Electrical Engineering Technology  
Industrial University of Ho Chi Minh City 

Ho Chi Minh City, Vietnam 
nguyenthanhthuan@iuh.edu.vn 

Ngoc Anh Nguyen 

Faculty of Electrical Engineering Technology  
Industrial University of Ho Chi Minh City 

Ho Chi Minh City, Vietnam 
nguyenngocanh@iuh.edu.vn 

Le Anh Tu Nguyen 

Faculty of Electrical Engineering Technology  
Industrial University of Ho Chi Minh City 

Ho Chi Minh City, Vietnam 
lenguyenanhtu@iuh.edu.vn 

 

Abstract—The evolving electricity market has increased power 

demand and has brought many social benefits. Meanwhile, the 

transmission systems are not developed to the same extent 
because building new lines is difficult for environmental and 

political reasons. Hence, the systems are driven close to their 

limits resulting in congestions and critical situations endangering 

the system’s security. Due to this, the study of enhancing the 

transfer capability of existing power networks to satisfy the 

increased power demand, maximum social welfare, and ensure its 
secure operation has become one of the challenges the 

Independent System Operator faces in the electricity market. In 

order to solve this problem without building more transmission 

lines, the installation of FACTS devices can be a better 

alternative. Among FACTS devices, thyristor-controlled series 

compensator (TCSC) is one that can redistribute power flow in 

the network to improve the transfer capability of the existing 
system effectively. However, it is very difficult to implement. This 

paper presents the implementation of the Cuckoo Optimization 

Algorithm (COA) to solve the OPF problem which is formulated 

as a nonlinear optimization problem with equality and inequality 

constraints in a power system for social welfare maximization via 

the optimal installation of TCSC devices. As Cuckoo Search 

Algorithm (CSA), the COA also starts with an initial population-
based metaheuristic optimization inspired by the nature of brood 

parasitism of some cuckoo species. However, unlike CSA, COA 

uses the cuckoo’s style for egg-laying to optimize the local search 

instead of using Lévy flights. This model is tested in IEEE 14 and 

IEEE 30 bus systems. Simulations results are compared with GA 

and GWO and show that the COA is one useful method for 
TCSC installation to maximize social welfare. 

Keywords-cuckoo optimization algorithm; FACTS; TCSC; social 

benefits; electricity market 

I. INTRODUCTION  

Due to the rapid technological progress, the consumption of 
electric energy increases continuously. For the last three 
decades, many electrical power utilities have been forced to 

change their way of operation from monopolistic structure to 
competitive market structure. In Vietnam, pilot steps of the 
roadmap for the application of electricity market approved by 
the Prime Minister, are being applied and the country moves 
towards a competitive electricity market. The basic idea of 
deregulation is to make supply and demand competitive so that 
all participants, i.e. generator companies, distribution 
companies, and the customers maximize their individual 
welfare. The supply or cost bid provided by a generator 
company is the minimum asking price that it would accept for 
supplying a particular amount of power. Similarly, the demand 
or benefit bid of a consumer is the maximum price that it would 
pay for consuming a particular amount of power. The 
Independent System Operator (ISO) is responsible for the 
buying and selling of power between generator and distribution 
companies to the customers based on supply and demand bids, 
which are prepared in such a way as to maximize social 
welfare. In order to solve this problem, transmission 
improvement methods are applied to achieve minimum 
generation costs, subject to system security constraints. In 
contrast, social welfare maximizing is the objective of most 
studies in deregulated power systems. Several studies have also 
been performed on congestion management to maximize social 
and individual welfare [1-2], as well as social welfare 
maximization considering reactive power and congestion 
management in the deregulated environment [3]. Distributed 
generator locations for social welfare maximization are 
presented in [4]. These studies focused on a method for 
increasing social welfare under congestion probability in 
transmission networks. 

Recently, Flexible AC Transmission Systems (FACTS) [5] 
have also been utilized to solve the congestion problem and 
maximize social welfare. Many studies have been proposed for 
the improvement of existing power networks via optimal 
location of FACTS [6-19]. Interior point method was used for 
system expansion with UPFC to maximize social welfare and 

Corresponding author: Thanh Long Duong



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4947 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

to manage congestion [20]. In [21], Mixed Integer Non-linear 
programming was used for optimal location of FACTS to 
maximize social welfare based on multiple time periods. But it 
ignored the impact of FACTS on the reactive power flow. In 
[22] FACTS device thyristor-controlled series compensator 
(TCSC) is optimally located for congestion management 
maximizing social welfare using genetic algorithm (GA) and 
GWO algorithm. An efficient GA was proposed for optimal 
size and location of TCSC in a deregulated market for 
congestion management with aim of maximizing the social 
welfare cost [23]. In [24], a new fuzzy-based genetic algorithm 
(Fuzzy-GA) for alleviating congestion and maximizing social 
benefit in a double-sided auction market by locating and sizing 
of one TCSC unit. In [25], a GA for finding the optimal 
location and size of this device was proposed for congestion 
management with the aim of increasing social welfare. A novel 
efficient differential evolution and evolutionary programming 
technique for social welfare maximization by optimal location 
of various FACTS devices in pool electricity market based on 
contingency analysis was introduced in [26]. 

Optimal location of FACTS devices is a complex 
combinatorial analysis, which is best studied using 
metaheuristic algorithms. Many researchers have tested 
different optimization algorithms. A new meta-heuristic 
algorithm called Cuckoo Optimization Algorithm (COA) was 
developed in [27]. COA is a nature-inspired meta heuristic 
algorithm which is inspired by the life of cuckoo bird family. 
The special lifestyle of these birds and their characteristics in 
egg-laying and breeding has been the basic motivation for 
development of this new evolutionary optimization algorithm. 
It is a novel evolutionary algorithm, suitable for the continuous 
nonlinear optimization problem. Similar to other evolutionary 
methods, the initial population of COA is randomly generated 
within the control parameter limits. The effort to survive 
among cuckoos constitutes the basis COA. During the survival 
competition some of the cuckoos or their eggs may perish. The 
survived cuckoo societies migrate to a better environment and 
start reproducing and laying eggs. Cuckoos survival effort 
hopefully converges to a state that there is only one cuckoo 
society, with all birds having the best profit values. Application 
of the COA algorithm to some benchmark functions and a real 
problem has proven its capability in solving complex, nonlinear 
and non-convex optimization problems [27]. The key features 
of the COA are its faster convergence rate and the reduction in 
computational complexity. Hence, it may become an effective 
tool in solving power system optimization problems. However, 
the COA is only introduced in the OPF problem [28], and it 
still hasn’t been used to solve TCSC optimization problems. In 
this paper, COA has been implemented to solve the OPF 
problem which is formulated as a nonlinear optimization 
problem with equality and inequality constraints in a power 
system for maximization of the social welfare via optimal 
installation of TCSC devices. The proposed approach has been 
tested on the IEEE 14-bus and IEEE 30-bus systems. 
Simulation results are compared with the re results of GA and 
GWO and show that the COA is also one of useful algorithm in 
solving the power system optimization problem. 

II. PROBLEM FORMULATION 

A. Modeling of TCSC 

The model of the network with TCSC is shown in Figure 1. 
TCSC is integrated in the OPF problem by modifying the line 
data. This device may have either inductive compensation or 
capacitive compensation by limiting 70% to 50% of the 
reactance of the uncompensated line where TCSC is located. 
Let Xij be the reactance of the transmission line and XTCSC the 
reactance of TCSC and Xnew the new reactance of the line after 
placing TCSC between buses i and j: 

New ij TCSCX X X= +   (1) 

TCSC TCSC ijX k X=   (2) 

2
= ( cos sin )

ij i ij i j ij ij ij ij
P V G VV G Bδ δ− +  (3) 

2
= ( sin cos )

ij i ij i j ij ij ij ij
Q V B VV G Bδ δ− − −  (4) 

2
= ( cos sin )

ji j ij i j ij ij ij ij
P V G VV G Bδ δ− −  (5) 

2
= ( sin cos )

ji j ij i j ij ij ij ij
Q V B V V G Bδ δ− + +  (6) 

where δij is the voltage angle difference between bus i and bus,; 
the conductance and susceptance of transmission line can be 
calculated respectively as: 

2 2

new

ij

ij

ij

R
G

R X
=

+
 (7) 

new

2 2ij

ij ij

X
B

R X
=

+
 (8) 

jxr ijij+

jB
sh

jB
sh

jx
TCSC

 
Fig. 1.  Modeling of transmission line with TCSC 

B. Objective Function 

Market prices for a given amount of power can be 
determined by solving the optimization problem with the 
objective of maximizing social welfare to satisfy limited 
constraints. Generally, bulk loads as well as retailers in 
deregulated electricity market are required to bid their 
maximum demand and price function. Similarly, all generators 
are also required to bid their generation cost function along 
with their maximum generation. In electricity market, 
generation and distribution companies are allowed to offer and 
bid their prices to the ISO [29]. Social welfare optimization 
provides the demand and the generation of all the buses to be 
known. Let the vector of pool real power demand (Pdp) and 



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4948 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

vector of pool real power generation (Pgp) be given in (9) and 
(10): 

{ }; 1,2,3.....p PjPd Pd j m= =  (9) 

{ }; 1,2,3.....p PiPg Pg i n= =  (10) 
where, m is the number of dispatch able loads, and n is the 
number of generators. Let the generation cost curve of the 
generator placed at bus i bidding to the pool be denoted by

( )P
ii

PgC . The benefit function for a load is ( )P
jj

PdB . It 

represents the load price which is willing to pay for the 

purchase of an amount of electric power p
j

Pd . In electricity 

market, the social benefit for an elastic load is given by (11). 
The elastic load is sensitive to the energy price.  











+ ∑∑

∈∈

)()(
j

Ni

ji

Ni

i
PdWPgWMax

dg

 (11) 

where Wj(Pdj) is the consumers welfare function. Optimal 
social welfare occurs when the total of all generator and 
consumer units’ welfare in the system are maximized. 

( ) ( )
jjjjj

PdPdBPdW λ−=
 
 (12) 

The Bj in (12) indicates the i-th load utility function and λ is 
the amount of cost that should be paid for each MW of energy 
per unit. Wi(Pgi) is the welfare function of the generators: 

( ) ( )
iiiii

PgCPgPgW −= λ  (13) 

Ci is representing the cost function of the i-th generator. 
The λ is the cost each generator should be paid per MW of 
energy. From (11)-(13) the objective function can be written as:  

( ) ( )

d g

obj j j i i

i N i N

F Max B Pd C Pg
∈ ∈

 
 = −
 
 
∑ ∑   (14) 

where, ( )
gigigigìgi

P

ii
cPbPaPgC ++= 2  is the cost function of the 

generator and ( )
djdjdjdjdj

P

jj
cPbPaPdB ++= 2 is the profit 

function of the customer.  

The social welfare is mathematically maximized subject to 
the following transmission network constraints: 

• Power balance equation: 

( , ) 0 1,...,i di gi bP V P P i Nδ + − = =  (15) 

( , ) 0 1,...,
i di gi b

Q V Q Q i Nδ + − = =  (16) 

• Power generation limit : 

min max
1,.....,gi gi gi gP P P i N≤ ≤ =  (17) 

min max
1,.....,gi gi gi gQ Q Q i N≤ ≤ =  (18) 

• Bus voltage limits: 

min max
1,.....,i i i bV V V i N≤ ≤ =  (19) 

• Apparent line flow limit: 

,max 1,.....,l l lS S l N≤ =  (20) 

III. INTRODUCTION OF COA  

COA is inspired by the special life style of cuckoo birds. 
No cuckoo bird nests its eggs. Mature cuckoos have to find a 
host bird nest to safely place their eggs. After that, the feed 
responsibility belongs to the host bird. Only a number of the 
cuckoo’s eggs have the chance to grow and become mature 
cuckoos. All mature cuckoos will move forward to the best 
Habitat. After some iterations, the cuckoo populations will 
converge in a Habitat with the best profit values [27]. Like 
other evolutionary algorithms, the proposed algorithm starts 
with an initial population of cuckoos. These initial cuckoos lay 
some eggs in some host bird’s nests. Some of these eggs which 
are more similar to the host bird’s eggs have the opportunity to 
grow and become mature cuckoos. Other eggs are detected by 
the host birds and are destroyed. The grown eggs reveal the 
suitability of the nests in that area. The more eggs survive in an 
area, the more profit is gained in that area. So, the Habitat in 
which more eggs survive will be the term that COA is going to 
optimize. 

A. Generating the Initial Cuckoo Habitat 

In order to solve an optimization problem, it is necessary 
the values of problem variables to be formed as an array. In 
COA, it is called Habitat. In the Nvar dimensional optimization 
problem, a Habitat is an array of 1×Nvar, representing the 
current living Habitat of cuckoo. This array is defined as: 

Habitat = [x1, x2, . . . , xNvar]T (21) 

Each of the variable values (x1, x2, …, xNvar) is a floating 
point number and a Habitat may represent a vector of control 
variables of the OPF problem. The profit of a habitat is 
obtained by the evaluation of the profit function fP at a Habitat. 

Profit = fp(Habitat) = fp(x1, x2, . . . , xNvar )  (22) 

COA is an algorithm that maximizes the profit function. In 
order to use COA in cost minimization problems such as 
minimizing the fitness function in the OPF problem, (22) can 
be write as: 

Profit = − Cost(Habitat) = − fp(x1, x2, . . . , xNvar )(23) 

B. Cuckoo’s Style for Egg Laying 

In the first iteration, a candidate Habitat matrix of size 
NPop×NVar is generated. Then some random eggs are dedicated 
to each cuckoo and its ELR (Eggs Laying Radius) is calculated. 
The ELR is defined as: 

ELR = � ∗
� !"#$	%&	' $$#()	* '+%%,-	#..-

/%)01	( !"#$	%&	#..-
∗ (23456 − 234789) (24) 

where α is an integer to handle the maximum value for ELR 
and varhi and varlow is the up and down limits of optimal 
variables. The aim of ELR is to determine and limit the 
searching space in each iteration step. 



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4949 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

C. Eliminating Cuckoos in Worst Habitats 

Due to the equilibrium in bird’s population, only a 
maximum number of cuckoos may live in the environment, 
termed as MaxNumofCuckoos. A priority list may be created 
by evaluation and sorting of the Profit value of the Habitat of 
each newly grown cuckoo. So, there are MaxNumofCuckoos 
cuckoos from the first of priority list alive, and the other 
cuckoos will die. This work will decrease computational time 
because there is a limited number of best solutions to be used in 
the next iteration. 

D. Immigration of Cuckoos 

The Habitat in which cuckoos have the best conditions to 
live and grow or the best profit value will be considered as the 
goal point of the other cuckoos. They will immigrate as closer 
as they can towards the goal point. After a period of time, 
cuckoos grow to mature cuckoos and restart the process. This 
means that cuckoo population will find the best place to live 
after many iterations. This work will help the OPF problem to 
find the best solutions.  

IV. APPLICATION COA FOR SOLVING THE PROBLEM OF 
SOCIAL WELFARE MAXIMIZATION  

The flow chart of COA for the social welfare maximization 
problem is presented in Figure 2. 

 

- Read data input

- Set parameter of COA 

- Calculated egg laying radius (ELR) for each cuckoo 

as (29-30)

- Update egg’s positions after laying eggs as (31-32).

Create the initial population of  COA as (25-27 )

- Sort value of all fitness functions as a priority list and 
stores the relevant each cuckoo 

- Keep a number of MaxNumofCuckoos cuckoos and 
kill the others at the bottom of list

Evaluate fitness function for each cuckoo as (33)

- Determine the best cost and the goal point 

- Update new values to each cuckoo as (34)

Iter  <  Iter max

Output: the best cost and the goal point 

Calculate the number of eggs for each cuckoo as (28)

Start

End

Yes

No

 
Fig. 2.  The flowchart of COA for the social welfare maximization 
problem 

The steps of the maximizing social welfare problem using 
the proposed COA are presented below. 

Step 1: Prepare a system data base. System topology, line 
and load specifications, generation limits, line flow limits and 
cost coefficient parameters. 

Step 2: Set parameter for COA and social welfare problem: 
NumCuckoos: the number of cuckoos in the first population, 
MinEggs: the minimum number of eggs of each cuckoo, 
MaxEggs: the maximum number of eggs of each cuckoo, 
MaxIter: the maximum number of iterations, MotionCoceff: the 
variable to control the towards to goal point process, 
MaxCuckoos: the maximum number of Cuckoos that can live at 
the same time, RadiusCoceff: the control parameter of egg 
laying radius, Npar is the number of optimal variables. It is set 
equal to the number of variables included in vector Xid. Kp, Kq, 
Kv, Ks: the penalty factors.  

Step 3: Create the initial population:  

2 2 1
.... , .... , .... , ,

id g gNg d dNd g gNg TCSC TCSC
X P P P P V V N K =   

(25) 

Each Habitat of cuckoos (Xid) is created as follows: 

( )min max min1*id id id idX X rand X X= + −   (26) 

A random goal point is created as follow: 

( )min max minint 1*id id idGoalPo X rand X X= + −   (27) 
The Habitat is a random matrix sized [1xNpar], and is 

representing the living environment of each cuckoo. 

Step 4: Calculate the number of eggs for each cuckoo as: 

( )
’  

– 2

NumberCuckoo s eggs

MaxEggs MinEggs xrand MinEggs

=

+
 (28) 

Step 5: Calculate the ELR for each cuckoo. Update egg’s 
positions after laying eggs.  

( )max min
max

' id id
i

numbercuckoo s eggs X X RadiusCoeff
ELR

Total Number of egg

∗ − ∗
= (29) 

max
* 3i iELR ELR rand=  (30) 

where rand3 is a random matrix with size 1xNumber of current 
eggs, so ELRi is a matrix with number of eggs rows and Npar 
columns. 

( ) ( ) ( )( )41 cos sinrandi i iAdd ELR in angles ELR angles= − ∗ ∗ + ∗  (31) 
( )1
id id iX X Add= +  (32) 

where rand4 is a random value, it can be set to 1 or 2, and 
angles is a random line space represent for the flying angles of 
cuckoo. Each row of matrix Xid is a candidate for the vector 
habitat Xid. Then, the limit for each Xid is checked and the egg 
laying process is done.  

Step 6: Solve power flow for each candidate Xid. The fitness 
function is calculated by:  

lim 2 lim 2

1 1

lim 2 max 2

1 1

NB NB

f obj p gi gi q gi gi

i i

NB NL

V i i S li li

i i

F F k (P P ) k (Q Q )

k (V V ) k (s S )

= =

= =

= − − − −

− − − −

∑ ∑

∑ ∑
 (33) 



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4950 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

Step 7: Evaluate the fitness function for each Xid in Step 6. 
Sort the value of all fitness functions as a priority list and store 
the relevant Xid.  

Step 8: Based on the priority list, keep a number of 
MaxNumofCuckoos Xid and kill the others at the bottom of the 
list.  

Step 9: The first Xid of the list is the best Xid solution in this 
iteration. It is the best cost and will be the new goal point for 
the others. Their new Habitat is determined as: 

( ) ( )( ) ( )2 1 1int- * 5*id id idX Goalpo X rand MotionCoeff X= +  (34) 
Step 10: Update new values to Xid and save the best cost, 

which is the goal point.  

Step 11: Check the condition to stop the program. If 
Iter < IterMax, Iter = Iter + 1 and return to Step 4. Otherwise, stop. 

V. NUMERICAL RESULTS 

A. IEEE 14-Bus Test System 

The IEEE 14-bus system was used to investigate the effect 
of TCSC on social welfare. The IEEE 14 bus system consists 
of 5 generators and 20 lines, as shown in Figure 3. The 
marginal benefit function for generator and load are given in 
[12]. Optimal power flow programs are executed by modifying 
the MATPOWER [30] program implementation of COA in 
scheduling GENCOS and DISCOS (Table I). 

 
Fig. 3.  The IEEE 14-bus system 

 
Fig. 4.  The bus voltage profile of IEEE 14-bus system with and without 
TCSC 

 
Fig. 5.  Power flow branch of IEEE 14-bus system with and without TCSC 

The results of social benefit, scheduling of GENCOS and 
DISCOS in the case of with and without TCSC for the IEEE 14 
bus system are presented in Tables I-IV. From Table I it can be 
seen that, the total real power of the generator and the total 
power consumption in the case of using the COA algorithm are 
higher than when using the GA and GWO algorithm [22]. 
Moreover, the distribution of power consumption at the load 
buses of the COA algorithm compared to GA, GWO is also 
different, reflecting in better social benefit value for COA 
algorithm as shown in Table III. 

 

 
Fig. 6.  Convergence characteristics of COA compared PSO and BOA for 
the IEEE 14 bus system without TCSC 

 
Fig. 7.  Convergence characteristics of COA compared PSO and BOA for 
the IEEE 14 bus system with TCSC 



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4951 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

TABLE I.  COMPARISON OF GA AND GWO SCHEDULING OF GENCOS AND DISCOS WITHOUT TCSC FOR THE IEEE 14 BUS SYSTEM 

 
Bus 

no 

GA [22] GWO [22] COA 

V (pu) P (MW) Q (Mvar) V (pu) P (MW) Q (Mvar) V (pu) P (MW) Q (Mvar) 

Gen 1 1.1 94.97 45.43 1.1 97.55 43.51 1.1 97.675 39.895 

 2 1.089 100.0 56.58 1.089 100.0 54.57 1.091 100.00 59.818 

 3 1.095 100.0 29.86 1.095 100.04 29.18 1.100 100.00 34.050 

 6 1.035 52.08 7.22 1.035 50.31 15.29 1.027 52.176 10.825 

 8 1.09 0 25.28 1.09 0 25.21 1.086 0 24.995 

Total   347.0 164.67  347.9 167.76  349.8 169.58 

Dis 4 0.997 110.9 53.75 0.998 110.9 53.73 0.998 110.11 53.330 

 5 0.991 131.3 63.61 0.994 117.6 56.99 0.993 118.79 57.536 

 9 1.039 5.01 2.43 1.04 5.02 2.43 1.045 0 0 

 10 1.019 20.82 10.08 1.022 11.15 5.4 1.034 5.0015 2.4223 

 11 1.01 18.19 8.81 1.0 29.92 14.49 1.015 13.897 6.7306 

 12 0.998 18.51 8.97 0.978 31.35 15.18 0.993 28.420 13.764 

 13 1.01 14.42 6.98 1.01 5.63 2.73 0.970 31.485 15.249 

 14 1.009 12.07 5.85 0.998 19.51 9.45 1.002 5.0000 2.4216 

Total   331.3 160.49  331.16 160.39  332.83 161.20 

 

TABLE II.  COMPARISON OF GA AND GWO SCHEDULING OF GENCOS AND DISCOS WITH TCSC FOR THE IEEE 14 BUS SYSTEM 

 
Bus 

no 

GA [22] GWO [22] COA 

V (pu) P (MW) Q (Mvar) V (pu) P (MW) Q (Mvar) V (pu) P (MW) Q (Mvar) 

Gen 1 1.1 98.37 53.65 1.1 93.83 44.26 1.1 94.903 32.391 

 2 1.089 100.1 53.66 1.089 101.1 52.95 1.093 100.03 59.480 

 3 1.095 100.0 30.1 1.095 101.1 28.42 1.099 100.00 28.517 

 6 1.035 64.25 7.92 1.035 49.8 15.42 1.051 49.492 19.235 

 8 1.09 0 25.49 1.09 0 26.0 1.092 0 24.987 

Total   362.8 170.82  344.8 344.87  344.43 164.61 

Dis 4 0.997 125.4 60.74 0.999 102.8 49.79 1.000 116.8 56.60 

 5 0.995 129.1 62.54 0.994 118.7 57.71 0.997 117.6 56.97 

 9 1.039 5.0 2.42 1.036 5.0 2.42 1.038 5.001 2.422 

 10 1.019 20.12 9.74 1.019 14.46 7.0 1.019 22.14 10.72 

 11 1.007 20.48 9.92 1.001 26.95 13.05 1.014 20.13 9.749 

 12 0.995 27.99 13.55 0.981 27.71 13.42 1.014 22.03 10.67 

 13 1.012 10.5 5.09 1.002 8.57 4.15 1.019 11.45 5.546 

 14 1.016 7.69 3.72 0.985 24.14 11.69 0.996 22.85 11.06 

Total   346.3 167.74  328.37 159.04  328.1 158.88 

 

TABLE III.  COMPARISON OF GA, GWO AND COA FOR SOCIAL WELFARE MAXIMIZATION FOR THE IEEE 14 BUS SYSTEM 

 
Without TCSC With TCSC 

GA [22] GWO [22] COA GA [22] GWO [22] COA 

Gencos 1408.93 1415.50 1424.87 1494.77 1401.62 1396.48 

Discos 2910.75 2966.62 2982.17 3014.85 2969.66 3022.30 

Social Welfare 1501.81 1551.12 1557.30 1520.08 1568.03 1581.21 

Location of TCSC Line 1-5 Line 6-13 Line 7-9 

Size of TCSC (pu) -0.2315 -0.49 -0.693 

 

Table III shows that the social benefit of GA and GWO 
algorithms is 1501.81 ($/h) and 1551.12 ($/h) while for COA is 
1557.30 ($/h). Compared with GA and GWO, the social benefit 
of COA is 3.56% higher than the one for GA and 0.39% higher 
than the one for GWO. In addition, as can be seen from Figures 
4-5, the power on the branches and the voltage at the buses 
when using the COA algorithm are within the allowable limits. 
The scheduling of GENCOS and DISCOS in the case with 
TCSC of COA are presented in Table II. The TCSC has 
redistributed the power flow on the lines, increasing social 
benefits. The optimal position of TCSC is at line 7-9 with 
XTCSC=-0.693pu when using the COA algorithm. From Figures 
3-4 it can be seen that the power flow on the branches in the 

system is redistributed with more balance, the voltage at the 
buses is also within limits after installing TCSC. Social benefits 
of GA, GWO and COA algorithms with TCSC are presented in 
Table III. It can be seen that the social benefit in the case when 
using TCSC of COA algorithm is 3.86% higher than with GA 
algorithm with TCSC and 0.83% higher than with GWO 
algorithm with TCSC. The results of generator power and load 
power cases with and without TCSC using COA algorithm are 
presented in Table IV. From this Table, it can be seen that the 
total real power of generator and total power consumption in 
the case of TCSC is less than in the case without TCSC, but the 
social benefits in the case of TCSC are higher than without 
TCSC as shown in Table III. This shows that TCSC has 



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4952 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

improved social benefits. The TCSC has redistributed the 
power flow and improved the transmission capability. Hence, 
load buses that have high benefit factor tend to increase the 
power consumption as seen in Table IV (bus 10, bus 14), while 
load buses that have low benefit tend to reduce power 
consumption as seen in Table IV (bus 11, bus 4), so customer 
benefits are increased and results of social benefits in the case 
with TCSC is 1.51% higher than when there is no TCSC. In 

addition, the convergence of the COA algorithm is compared to 
Particle Swarm Optimization (PSO) and Butterfly Optimization 
Algorithm (BOA). From Figures 6-7 can be seen that COA has 
the ability to converge quickly when compared to PSO and 
BOA. This shows that the COA algorithm is able to find the 
suitable location and size of TCSC to improve social benefits in 
the electricity market. It also shows the ability of the proposed 
COA algorithm to converge. 

TABLE IV.  THE RESULTS OF SCHEDULING OF GENCOS AND DISCOS WITH AND WITHOUT TCSC FOR THE IEEE 14 BUS SYSTEM 

COA 
 Without TCSC With TCSC 

Bus no Voltage (pu) Real power (MW) Reactive power (Mvar) Voltage (pu) Real power (MW) Reactive power (Mvar) 

Gencos 1 1.1 97.6759 39.8956 1.1 94.9034 32.3914 

 2 1.0911 100.0001 59.8188 1.0935 100.0353 59.4800 

 3 1.1000 100.0003 34.0500 1.0999 100.0024 28.5171 

 6 1.0271 52.1765 10.8259 1.0511 49.4929 19.2359 

 8 1.0862 0 24.9951 1.0924 0 24.9875 

Total   349.8529 169.5854  344.4340 164.6120 

Discos 4 0.9983 110.1130 53.3301 1.0050 103.1062 49.9366 

 5 0.9932 118.7988 57.5369 1.0011 115.3352 55.8594 

 7 1.0456 0 0 1.0521 0 0 

 9 1.0343 5.0015 2.4223 1.0410 5.0037 2.4234 

 10 1.0151 13.8970 6.7306 1.0227 22.2554 10.7788 

 11 0.9939 28.4203 13.7646 1.0178 19.7659 9.5731 

 12 0.9700 31.4859 15.2493 0.9954 30.8817 14.9567 

 13 1.0027 5.0000 2.4216 1.0255 5.0174 2.4301 

 14 0.9905 20.1220 9.7455 1.0063 26.6867 12.9250 

Total   332.8384 161.2010  328.0524 158.8830 

 

TABLE V.  COMPARISON OF GA AND GWO SCHEDULING OF GENCOS AND DISCOS WITHOUT TCSC FOR THE IEEE 30 BUS SYSTEM 

 
Bus 

no 

GA [22] GWO [22] COA 

V (pu) P (MW) Q (Mvar) V (pu) P (MW) Q (Mvar) V (pu) P (MW) Q (Mvar) 

Gen 1 1.0 180.0 - 40.2 1.0 178.0 -39.78 1.0 192.5 8.253 

 2 1.0 53.19 54.31 1.0 60.29 52.42 0.977 79.67 37.74 

 5 1.0 35.32 89.76 1.0 33.61 91.46 0.947 32.56 70.01 

 8 1.0 35.0 53.43 1.0 34.99 53.21 0.953 19.66 54.63 

 11 1.0 30.0 12.69 1.0 30.0 12.09 0.997 27.48 15.84 

 13 1.0 40.0 28.27 1.0 40.0 32.06 0.999 39.35 20.74 

Total   373.5 198.05  376.9 201.48  391.3 207.2 

Dis 2 1.000 50.0 24.22 1.000 50.0 24.22 0.977 49.98 24.20 

 3 0.984 8.82 4.27 0.984 9.7 4.7 0.956 3.647 1.766 

 4 0.982 8.51 4.12 0.982 2.02 0.98 0.946 9.927 4.807 

 5 1.000 100.0 48.43 1.000 100.0 48.43 0.947 99.94 48.40 

 7 0.974 46.31 22.43 0.972 49.14 23.80 0.925 50.00 24.21 

 8 1.000 34.12 16.52 1.000 33.39 16.46 0.953 50.00 24.21 

 10 0.959 9.36 4.53 0.961 4.25 2.06 0.950 8.390 4.063 

 12 0.962 33.91 16.42 0.957 49.96 24.2 0.972 19.20 9.303 

 14 0.941 8.31 4.02 0.942 3.6 1.74 0.942 10.00 4.843 

 15 0.942 5.72 2.77 0.935 9.89 4.79 0.937 9.885 4.787 

 16 0.949 9.10 4.41 0.955 2.41 1.17 0.954 6.738 3.263 

 17 0.953 4.76 2.31 0.958 3.18 1.54 0.950 2.894 1.401 

 18 0.927 6.5 3.15 0.929 7.91 3.83 0.918 6.122 2.965 

 19 0.928 8.37 4.05 0.936 2.34 1.13 0.915 9.854 4.772 

 20 0.934 2.96 1.44 0.941 2.02 0.98 0.921 5.526 2.676 

 21 0.953 6.06 2.91 0.952 11.61 5.62 0.943 6.340 3.070 

 23 0.936 4.91 2.38 0.926 8.08 3.91 0.921 9.830 4.760 

 24 0.943 3.45 1.67 0.935 6.55 3.17 0.927 5.408 2.619 

 26 0.938 2.01 0.87 0.936 2.09 1.01 0.913 3.266 1.581 

 29 0.931 3.45 1.67 0.940 2.06 1.000 0.913 3.001 1.453 

 30 0.922 6.57 3.18 0.932 5.59 2.71 0.901 7.499 3.632 

Total   363.1 175.87  366.38 177.45  377.4 182.8 

 



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4953 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

B. IEEE 30-Bus Test System 

The IEEE 30 bus data are considered from [31]. The system 
has 6 GENCOS and 21 DISCOS with 41 transmission lines, as 
shown in Figure 8. The marginal benefit function for GENCOS 
and DISCOS are given in [31]. The implementation of COA in 
scheduling GENCOS and DISCOS in the case without TCSC 
is presented in Table V. The Table shows that the total real 
power of generator and total power consumption when using 
the COA algorithm are higher than when using GA and GWO 
algorithms [22].  

 

 
Fig. 8.  The IEEE 30-bus system 

 
Fig. 9.  The bus voltage profile of IEEE 30-bus system without and with 
TCSC 

The scheduling is different reflecting in better social 
benefit, which is shown in Table VI. Using GA and GWO 
algorithm, the social benefit is 5098.72 ($/h), and 5116.56 
($/h), and that of COA is 5771.90 ($/h), which is 11.66% and 
11.35% higher respectively. Figures 9-10 show the power on 
the branches and the voltage at the buses in the case without 

and with TCSC when using the COA algorithm, and they meet 
the allowable limits. It can be seen that, the social benefit value 
of using COA with TCSC is 5828.29 ($/h) as shown in Table 
VI, which is 12.28% higher than the social benefit of using GA 
with TCSC, and is 6.66% higher than the social benefit of 
using GWO with TCSC. From Figures 11-12 it can be seen that 
in the case with TCSC, COA has the ability to converge 
quicker than PSO and BOA. This shows that the COA is one of 
the useful methods for TCSC installation to maximize social 
welfare. 

 

 
Fig. 10.  Power flow branch of IEEE 30-bus system without and with TCSC 

 

 
Fig. 11.  Convergence characteristics of COA compared with PSO and 
BOA for the IEEE 30 bus system without TCSC 

 

 
Convergence characteristics of COA compared with PSO and BOA for the 
IEEE 30 bus system with TCSC 

 

P
o
w
e
r
 F
lo
w
 i
n
 B
r
a
n
c
h
 [
M
V
A
]



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4954 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

TABLE VI.  COMPARISON OF GA, GWO AND COA FOR SOCIAL WELFARE MAXIMIZATION FOR THE IEEE 30 BUS SYSTEM 

COA 
Without TCSC With TCSC 

GA [22] GWO [22] COA GA [22] GWO [22] COA 

Gencos 1133.95 1144.84 1392.7028 1123.76 1250.19 1404.7130 

Discos 6232.68 6261.40 7164.8892 6235.99 6689.80 7233.0322 

Social Welfare 5098.72 5116.56 5771.9023 5112.22 5439.61 5828.2939 

Location of TCSC Line 6-28 Line 6-8 Line 1-2 

Size of TCSC (pu) -0.4366 0.5 0.4999 

 

VI. CONCLUSIONS 

Maximizing social welfare is one of the most important 
issues in today’s competitive electricity market and a difficult 
challenge for the operator system to implement. Maximizing 
social welfare depends on the optimal rescheduling of 
generation, demand levels, and optimal placement of TCSC. In 
order to solve this problem, an effective method is required. In 
this paper, the Cuckoo Optimization Algorithm was proposed 
to maximize social welfare via optimal placing and sizing of 
TCSC. The test results on the IEEE 14-bus and the IEEE 30-
bus systems when utilizing COA were compared with the 
results from GA and GWO. The obtained simulation results 
demonstrate that the COA is a useful method for TCSC 
installation to maximize social welfare. 

REFERENCESS 

[1] J. D. Weber, T. J. Overbye, “An individual welfare maximization 
algorithm for electricity markets”, IEEE Transactions Power Systems, 
Vol. 17, No. 3, pp. 590-596, 2002 

[2] H. Liu, Y. Shen, Z. B. Zabinsky, C. C. Liu, A. Courts, S. K. Joo, “Social 
welfare maximization in transmission enhancement considering network 
congestion”, IEEE Transactions on Power Systems, Vol. 23, No. 3, pp. 
1105-1114, 2008 

[3] K. Singh, N. P. Padhy, J. D. Sharma, “Social welfare maximization 
considering reactive power and congestion management in the 
deregulated environment”, Electric Power Components and System, Vol. 
38, No. 1, pp. 50-71, 2010 

[4] D. Gautam, N. Mithulananthan, “Locating distributed generator in the 
LMP-based electricity market for social welfare maximization”, Electric 
Power Components and Systems, Vol. 35, No. 5, pp. 489–503, 2007 

[5] P. S. Georgilakis, P. G. Vernados, “Flexible AC transmission system 
controllers: An evaluation”, Materials Science Forum, Vol. 670, pp. 399-
406, 2011 

[6] M. Y. A. Khan, U. Khalil, H. Khan, A. Uddin, S. Ahmed, “Power flow 
control by unified power flow controller”, Engineering, Technology & 
Applied Science Research, Vol. 9, No. 2, pp. 3900-3904, 2019 

[7] Z. M. Zohrabad, “Application of hybrid HS and tabu search algorithm 
for optimal location of facts devices to reduce power losses in power 
systems”, Engineering, Technology & Applied Science Research, Vol. 6, 
No. 6, pp. 1217-1220, 2016 

[8] S. K. Verma, S. N. Singh, H. O. Gupta, “Location of unified power flow 
controller for congestion management”, Electric Power Systems 
Research, Vol. 58, No. 2, pp. 89–96, 2001 

[9] S. N. Singh, A. K. David, “Optimal location of facts devices for 
congestion management”, Electric Power Systems Research, Vol. 58, 
No. 2, pp. 71–79, 2001 

[10] N. Acharya, N. Mithulananthan, “Locating series facts devices for 
congestion management in deregulated electricity markets”, Electric 
Power Systems Research, Vol. 77, No. 3-4, pp. 352–360, 2007 

[11] K. Soleimani, J. Mazloum, “Considering facts in optimal transmission 
expansion planning”, Engineering, Technology & Applied Science 
Research, Vol. 7, No. 5, pp. 1987-1995, 2017 

[12] G. B. Shrestha, W. Feng, “Effects of series compensation on spot price 
power markets”, International Journal of Electric Power & Energy 
Systems, Vol. 27, No. 5, pp. 428–436, 2005 

[13] T. L. Duong, Y. J. Gang, L. A. T. Nguyen, G. Z. Wei, “Enhancing total 
transfer capability via optimal location of TCSC in deregulated 
electricity market”, Recent Advances in Electrical Engineering and 
Related Sciences, Vol. 282, pp. 47-56, 2013 

[14] T. L. Duong, Y. J. Gang, K. Tong, “Optimal location of thyristor-
controlled-series-capacitor using min cut algorithm”, TELKOMNIKA 
Indonesian Journal of Electrical Engineering, Vol. 12, No. 5, pp. 3649-
3661, 2014 

[15] T. L. Duong, Y. J. Gang, T. V. Anh, “Application of min cut algorithm 
for optimal location of facts devices considering system loadability and 
cost of installation”, International Journal of Electrical Power & Energy 
Systems, Vol. 63, pp. 979–987, 2014 

[16] T. L. Duong, Y. J. Gang, V. A. Truong, “Improving the transient 
stability-constrained optimal power flow with thyristor controlled series 
capacitor”, Russian Electrical Engineering, Vol. 85, No. 12, pp. 777–
784, 2014 

[17] T. L. Duong, Y. J. Gang, V. A. Truong, “A new method for secured 
optimal power flow under normal and network contingencies via optimal 
location of TCSC”, International Journal of Electrical Power & Energy 
Systems, Vol. 52, pp. 68–80, 2013 

[18] T. Kang, J. G. Yao, T. L. Duong, S. J. Yang, X. Q. Zhu, “A hybrid 
approach for power system security enhancement via optimal installation 
of flexible AC transmission system (facts) devices”, Energies, Vol. 10, 
No. 9, pp. 1305-1337, 2017 

[19] D. T. Long, N. H. Q. Viet, V. A. Truong, V. T. Kien, “Optimal location 
of facts devices for congestion management and loadability 
enhancement”, Journal Electrical Systems, Vol. 13. No. 3, pp. 579-594, 
2017 

[20] W. M. Lin, S. J. Che, Y. S. Su, “An application of interior-point based 
OPF for system expansion with facts devices in a deregulated 
environment”, IEEE International Conference on Power System 
Technology, Perth, Australia, December 4-7, 2000 

[21] Z. Yu, D. Lusan, “Optimal placement of facts devices in deregulated 
systems considering line losses”, International Journal of Electrical 
Power & Energy Systems, Vol. 26, No 10, pp. 813-819, 2004 

[22] S. K. Behera, N. K. Mohanty, “Social welfare maximization with 
thyristor-controlled series compensator using grey wolf optimization 
algorithm”, The International Journal of Electrical Engineering & 
Education, Vol. 56, No. 1, pp. 1-14, 2019 

[23] S. H. Song, J. U. Lim, S. Moon, “Installation and operation of facts 
devices for enhancing steady-state security”, Electric Power Systems 
Research, Vol. 70, No. 1, pp. 7–15, 2004 

[24] S. M. H. Nabavi, A. Kazemi, M. A. S. Masoum, “Social welfare 
maximization with fuzzy based genetic algorithm by TCSC and SSSC in 
double-sided auction market”, Scientia Iranica, Vol. 19, No. 3, pp. 745–
758, 2012 

[25] S. M. H. Nabavi, N. A. Hosseinipoor, “Social welfare maximization by 
optimal locating and sizing of TCSC for congestion management in 
deregulated power markets”, International Conference on Power System 
Technology, Hangzhou, China, October 24-28, 2010 

[26] K. Balamurugan, R. Muralisachithanandam, V. Dharmalingam, 
“Performance comparison of evolutionary programming and differential 
evolution approaches for social welfare maximization by placement of 
multi type facts devices in pool electricity market”, International Journal 
of Electrical Power & Energy Systems, Vol. 67, pp. 517–528, 2015 



Engineering, Technology & Applied Science Research Vol. 9, No. 6, 2019, 4946-4955 4955 
 

www.etasr.com Duong et al.: An Effective Method for Maximizing Social Welfare in Electricity Market via Optimal … 

 

[27] R. Rajabioun, “Cuckoo optimization algorithm”, Applied Soft 
Computing, Vol. 11, No. 8, pp. 5508-5518, 2011 

[28] T. N. L. Anh, D. N. Vo, W. Ongsakul, P. Vasant, T. Ganesan, “Cuckoo 
optimization algorithm for optimal power flow”, 18th Asia Pacific 
Symposium on Intelligent and Evolutionary Systems, Singapore, 
November 10-12, 2015 

[29] L. L. Lai, Power system restructuring and deregulation, John Wiley and 
Sons, 2001 

[30] R. Zimmerman, D. Gan, MATPOWER: A matlab power system 
simulation package, Cornell University, 2016 

[31] T. Pend, K. Tomsovic, “Congestion influence on bidding strategies in an 
electricity market”, IEEE Transactions on Power Systems, Vol. 18, No. 
3, pp. 1054–1061, 2003