I. Introduction
Compared with the traditional power system control mode, FACTS has faster response speed, better controllability and stronger control ability. UPFC is the most powerful among all FACTS, which has a variety of control methods and can adjust local bus voltage and transmission line trend. The first UPFC demonstration project of 220kv was put into operation in Nanjing, Jiangsu Province in 2015, which was used to solve the power flow problem of Nanjing Western Ring Network. In 2017, UPFC of higher voltage grade 500kv has been installed in Suzhou, from which the maximum power consumption capacity of Suzhou power grid can be improved by about 1.3 million kw. This is the highest voltage level and largest capacity UPFC in the world at present. A lot of research on UPFC have been made for the last fewer years. the function of UPFC in improving the total transmission capacity of power grid is studied [2]. The influence of different control modes of UPFC on power grid is analyzed, and the best scheme with maximum transmission capacity and minimum power consumption is found. Paper[3] discusses the UPFC control mode and various aspects of the settings, and evaluates its impact on the stability of power systems. The main factors affecting the location and volume of UPFC are studied, and an optimization method is proposed to solve the problem of location and volume of UPFC in reference[4]. The economic indicators of power loss or coal consumption for power generation have been considered in paper [5]–[8]. It can be seen that most of the literature on UPFC is about the locating and sizing or power flow optimization. The grid expansion planning including a installed UPFC has not been studied in depth.