Stability Analysis of Multi-Period Electricity Market with Heterogeneous Dynamic Assets

Market-based coordination of demand side assets has gained great interests in recent years. In spite of its efficiency, there is a risk that the interaction between the dynamic assets through the price signal could result in an unstable closed-loop system. This may cause oscillating power consumption profiles and high volatile energy price. This paper proposes an electricity market model which explicitly considers the heterogeneous dynamic asset models. We show that the market dynamics can be modeled by a discrete nonlinear system, and then derive analytical conditions to guarantee the stability of the market via contraction analysis. These conditions imply that the market stability can be guaranteed by choosing bidding functions with relatively shallower slopes in the linear region. Finally, numerical examples are provided to demonstrate the application of the derived stability conditions.