Power markets stability considering energy imbalance

Power system markets represented by dynamic equations provide insights into the market behaviour which are not available from static models. The coupling between energy imbalance and market dynamics is studied by modelling the market dynamics together with the electromechanical power system dynamics. MATLAB based software is used to evaluate the eigenvalues of a linearized version of the various models of interest. Numerical results are presented to illustrate the effects of interaction between markets and power system parameters. Also, the effect of network congestion is studied through the coupling between energy imbalance and markets.