We explore optimization methods for planning the placement, sizing and operations of Flexible Alternating Current Transmission System (FACTS) devices installed into the grid to relieve congestion created by load growth or fluctuations of intermittent
renewable generation. We limit our selection of FACTS devices to those that can be represented by modification of the inductance of the transmission lines. Our master optimization problem minimizes the $l_1$ norm of the FACTS-associated inductance correction subject to constraints enforcing that no line of the system exceeds its thermal limit. We develop off-line heuristics that reduce this non-convex optimization to a succession of Linear Programs (LP) where at each step the constraints are linearized analytically around the current operating point. The algorithm is accelerated further with a version of the cutting plane method greatly reducing the number of active constraints during the optimization, while checking feasibility of the non-active constraints post-factum. This hybrid algorithm solves a typical single-contingency problem over the MathPower Polish Grid model (3299 lines and 2746 nodes) in 40 seconds per iteration on a standard laptop---a speed up that allows the sizing and placement of a family of FACTS devices to correct a large set of anticipated contingencies. From testing of multiple examples, we observe that our algorithm finds feasible solutions that are always sparse, i.e., FACTS devices are placed on only a few lines. The optimal FACTS are not always placed on the originally congested lines, however typically the correction(s) is made at line(s) positioned in a relative proximity of the overload line(s).
