Hybrid interconnection of iterative bidding and power network dynamics for frequency regulation and optimal dispatch

TL;DR

This paper introduces a hybrid algorithm combining iterative bidding and power network dynamics to achieve efficient market equilibrium and frequency regulation, with proven convergence guarantees and validated simulations.

Contribution

It presents a multi-rate hybrid algorithm that ensures convergence to an efficient Nash equilibrium and zero frequency deviation in real-time electricity markets.

Findings

Algorithm guarantees asymptotic convergence to equilibrium.

Sufficient bounds on inter-event times are established.

Simulations confirm effectiveness on IEEE 14-bus system.

Abstract

This paper considers a real-time electricity market involving an independent system operator (ISO) and a group of strategic generators. The ISO operates a market where generators bid prices at which there are willing to provide power. The ISO makes power generation assignments with the goal of solving the economic dispatch problem and regulating the network frequency. We propose a multi-rate hybrid algorithm for bidding and market clearing that combines the discrete nature of iterative bidding with the continuous nature of the frequency evolution in the power network. We establish sufficient upper bounds on the inter-event times that guarantee that the proposed algorithm asymptotically converges to an equilibrium corresponding to an efficient Nash equilibrium and zero frequency deviation. Our technical analysis builds on the characterization of the robustness properties of the continuous-time version of the bidding update process interconnected with the power network dynamics via the identification of a novel LISS-Lyapunov function. Simulations on the IEEE 14-bus system illustrate our results.