Conditional Value-at-Risk-Based Method for Evaluating the Economic Risk of Superconducting Fault Current Limiter Installation

Abstract

Superconducting fault current limiters (SFCLs), which are used to restrict the maximum fault current level in a power system, can contribute to the economic operation of a power system by reducing congestion costs and expected energy not served costs. However, various power system factors such as load and fuel price need to be taken into account because these factors result in an economic risk when SFCLs are installed in a power system. Therefore, it is needed to carry out an economic assessment of SFCLs considering both the expected benefit and the risk. This paper presents a risk-based economic assessment method for an SFCL installation under power system uncertainties. In the paper, the conditional value-at-risk (CVaR) is used to estimate the economic risk due to power system uncertainties when installing SFCLs. The proposed risk assessment method for SFCL installation can be useful as a decision-making tool.