The increasing growth in power demand and the penetration of renewable distributed generations in competitive electricity market demands large and flexible capacity from the transmission grid to reduce transmission bottlenecks. The bottlenecks cause transmission congestion, reliability problems, restrict competition, and limit the maximum dispatch of low cost generations in the network. The electricity system requires efficient utilization of the current transmission capability to improve the Available Transfer Capability (ATC). To improve the ATC, power flow among the lines can be managed by using Flexible AC Transmission System (FACTS) devices as power flow controllers, which alter the parameters of power lines. It is important to place FACTS devices on suitable lines to vary the reactance for improving Total Transmission Capacity (TTC) of the network and provide flexibility in the power flow. In this paper a transmission network is analyzed based on line parameters variation to improve TTC of the interconnected system. Lines are selected for placing FACTS devices based on real power flow Performance Index (PI) sensitivity factors. TTC is computed using the Repeated Power Flow (RPF) method using the constraints of lines thermal limits, bus voltage limits and generator limits. The reactance of suitable lines, selected on the basis of PI sensitivity factors are changed to divert the power flow to other lines with enough transfer capacity available. The improvement of TTC using line reactance variation is demonstrated with three IEEE test systems with multi-area networks. The results show the variation of the selected lines’ reactance in improving TTC for all the test networks with defined contingency cases.
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