Cost Allocation Framework for Small Signal Stability Ancillary Service in Deregulated Environment

An ISO is responsible for responsible for keeping system security within its specified limits. Rapid demand increase on one hand and less investment on transmission system and the other hand, have resulted in more stress on existing transmission grids. Therefore, various types of stability should be monitored and controlled. The small signal stability (SSS) is a type which may be improved using power system stabilizers (PSS). In this paper, though using the non-dominated sorting genetic algorithm version II (NSGA-II), it is, initially, shown how the PSSs may affect the generation cost as well as the SSS. Moreover, the service provided by PSSs is introduced as an ancillary service. A cost allocation framework is prospect in which the PSS owners are properly paid for their services provided.