Differential game-based load frequency control for power networks and its integration with electricity market mechanisms

This paper proposes a novel load frequency control architecture based on differential games in energy supply-demand network integrating power networks and real-time electricity regulation markets. In order to establish the control architecture that each area minimizes his own cost independently on not only the electricity market layer but also the physical layer, we first present a novel load frequency control in power networks, where set-point signals from electricity markets depend on competitive bidding among utilities in each area and they are regarded as stationary disturbances in power networks. Then, we show that the control problem can be reduced to a finite-horizon differential game and the solution of the differential game control problem is analytically given by a feedback Nash equilibrium. The effectiveness of the proposed control mechanism is finally demonstrated through simulations with two-area power and electricity market network model.