"On the Dynamic Stability of Electricity Markets"
V. M. Zavala and M. Anitescu
Preprint Version: [pdf]
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.