Frequency-driven market mechanisms for optimal dispatch in power networks

TL;DR

This paper introduces a real-time market mechanism for power dispatch that uses frequency as feedback to ensure stability, optimality, and convergence to a Nash equilibrium in electrical networks.

Contribution

It proposes a frequency-driven bidding process integrated with network dynamics, providing stability analysis and verification on a standard IEEE benchmark.

Findings

System achieves frequency regulation and stability.

Converges to Nash equilibrium and optimal dispatch.

Validated on IEEE 14-bus system.

Abstract

This paper studies real-time bidding mechanisms for economic dispatch and frequency regulation in electrical power networks. We consider a market administered by an independent system operator (ISO) where a group of strategic generators participate in a Bertrand game of competition. Generators bid prices at which they are willing to produce electricity. Each generator aims to maximize their profit, while the ISO seeks to minimize the total generation cost and to regulate the frequency of the system. We consider a continuous-time bidding process coupled with the swing dynamics of the network through the use of frequency as a feedback signal for the negotiation process. We analyze the stability of the resulting interconnected system, establishing frequency regulation and the convergence to a Nash equilibrium and optimal generation levels. The results are verified in the IEEE 14-bus benchmark case.