Abstract: This paper proposes an investment cost recovery
based efficient and fast sequential optimization approach to optimal
allocation of thyristor controlled series compensator (TCSC) in
competitive power market. The optimization technique has been used
with an objective to maximizing the social welfare and minimizing
the device installation cost by suitable location and rating of TCSC in
the system. The effectiveness of proposed approach for location of
TCSC has been compared with some existing methods of TCSC
placement, in terms of its impact on social welfare, TCSC investment
recovery and optimal generation as well as load patterns. The results
have been obtained on modified IEEE 14-bus system.