New insights into the dynamic stability of wholesale electricity markets

We summarize some recent results on the dynamic stability of wholesale electricity markets. We discuss how to construct control-theoretic market analysis frameworks using concepts of market efficiency, Lyapunov stability, and predictive control. Such frameworks can be used to design, analyze, and monitor the stability and robustness properties of different market designs. In particular, we discuss how short forecast horizons, incomplete gaming, and physical ramping constraints can give rise to stability issues.