Stability impacts on cross-border electricity trading

A major objective of cross-border electricity trading is to introduce competitive market structure with market transparency in order to avoid economic inefficiencies. Theoretically economists expect competitive behaviour in the deregulated electricity market would provide benefits on the economic aspects. However, it may also generate technical problems on the security and stability of the interconnected electricity system. This paper presents some preliminary studies carried out to investigate possible stability problems after the opening of electricity market in the region.