A general stability metric for competitive power markets

This paper develops a metric for determining the stability of power markets. The metric developed is valid for any differentiable generation cost curves and consumer utility functions. The results of extending of the metric to reflect the effects of the transmission network are also given. The formulation does not consider the time dynamics of the market. However the predictions of the metric were shown to be consistent with those derived from consideration of the markets time dynamics. Application of the metric to power market indicates that the stability of the market is in general a function of both market parameters, as well as its equilibrium states. That is in general power market stability is dependent on individual participants market-share and not just the functional forms of their cost or utility curves.