UPFC consist of two back to back converters named VSC1 and VSC2, are operated from a DC link provided by a dc storage capacitor. These arrangements operate as an ideal ac to ac converter in which the real power can freely flow either in direction between the ac terminals of the two converts and each converter can independently generate or absorb reactive power as its own ac output terminal.
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| Figure: Basic UPFC scheme |
One VSC is connected to in shunt to the transmission line via a shunt transformer and other one is connected in series through a series transformer. The DC terminal of two VSCs is coupled and this creates a path for active power exchange between the converters. VSC provide the main function of UPFC by injecting a voltage with controllable magnitude and phase angle in series with the line via an injection transformer. This injected voltage act as a synchronous ac voltage source. The transmission line current flows through this voltage source resulting in reactive and active power exchange between it and the ac system. The reactive power exchanged at the dc terminal is generated internally by the converter. The real power exchanged at the ac terminal is converted into dc power which appears at the dc link as a real power demand. And VSC1 is to supply or absorb the real power demanded by converter2 at the common dc link to support real power exchange resulting from the series voltage injection. This dc link power demand of VSC2 is converted back to ac by VSC1 and coupled to the transmission line bus via shunt connected transformer. In addition, VSC1 can also generate or absorb controllable reactive power if it is required and thereby provide independent shunt reactive compensation for the line. Thus VSC1 can be operated at a unity power factor or to be controlled to have a reactive power exchange with the line independent of the reactive power exchanged by VSC1. Obviously, there can be no reactive power flow through the UPFC dc link.