How Price-Based Frequency Regulation Impacts Stability in Power Grids: A Complex Network Perspective

Abstract

With the deregulation of modern power grids, electricity markets are playing a more and more important role in power grid operation and control. However, it is still questionable how the real-time electricity price-based operation affects power grid stability. From a complex network perspective, here we investigate the dynamical interactions between price-based frequency regulations and physical networks, which results in an interesting finding that a local minimum of network stability occurs when the response strength of generators/consumers to the varying price increases. A case study of the real world-based China Southern Power Grid demonstrates the finding and exhibits a feasible approach to network stability enhancement in smart grids. This also provides guidance for potential upgrade and expansion of the current power grids in a cleaner and safer way.