Passivity-Based Stability Analysis of Electricity Market Trading with Dynamic Pricing

Abstract

This paper deals with passivity-based stability analysis of electricity market trading with dynamic pricing. In the deregulated electricity market, power consumers and generators will participate in market trading as market players. For such a new kind of the market trading system, the dynamic pricing procedure has to be taken into account of the intermittent participation of power consumers and generators. Then, this paper discusses the stability of the electricity market trading system including power flow using passivity analysis. This paper also shows that the optimal power demand, supply and electricity prices are asymptotically stable and these values are derived in a distributed manner through market trading.

Keywords

• smart gird
• demand response
• dynamic pricing
• passivity