Summary
Deregulation of power system is advantageous economically, but this affects the voltage and thermal stability of the transmission lines. These effects on the transmission line are assessed by the stability analysis of the power system. Various power system security parameters/indices are proposed in the literature, but only a few are used in security assessment studies. In this work, numerous critical sensitive indices are considered in terms of transmission line loading and bus voltage magnitude deviation to carry out security assessment studies. The optimal placement of FACTS devices enhances the security of the power system. Therefore, in this work, multi‐line unified power flow controllers (UPFC, GUPFC) are employed for power system security enhancement. The present paper provides an in‐depth security assessment for the power system incorporated with multi‐line UPFCs operated with and without control modes (voltage, active, and reactive power) at different case scenarios. These cases constitute normal, transaction, and contingency conditions of a deregulated power system operating at specified transaction limits. The proposed security enhancement strategy is implemented on standard IEEE test systems such as the 30‐ and 118‐bus systems. The results obtained with UPFC and GUPFC are promising for security enhancement of a power system constricted to the specified transaction limits. Among the FACTS controllers, GUPFC has shown better performance, especially in contingency conditions.