Argonne National Laboratory

On the Dynamic Stability of Electricity Markets

TitleOn the Dynamic Stability of Electricity Markets
Publication TypeJournal Article
Year of Publication2011
AuthorsZavala, VM, Anitescu, M
Date Published01/2011
Other NumbersANL/MCS-P1834-0111

In this work, we present new insights into the dynamic stability of electricity markets. In particular, we discuss how short forecast horizons, incomplete gaming, and physical ramping constraints can give rise to stability issues. Using basic concepts of market efficiency, Lyapunov stability, and predictive control, we construct a new stabilizing market design. A numerical case study is used to illustrate the developments.