The economic value of advanced governor control

Stability, both small and large disturbances, is a critical part of day to day operation of the power system. Unstable system would not able to operate. Though critical, stability has often been overlooked in the markets and thus undervalued. In this paper different approaches used in the past have been critically reviewed and summarised. A simple example is then used to elucidate the physical meaning of optimal power dispatch with a limit due to stability. Finally, it is demonstrated that the system performance could improve with advanced governor control, i.e., using a phase compensated governor, and how this enhanced performance can be linked to economic values in the market.