The stability analysis of the strategic transaction in a deregulation environment

In a deregulation system, the transaction may happen at any participant of the power pool. This will result in the complexity of the power exchange. The supervisor is necessary to inspect the system stability. In the paper, we derive the dynamic equations for the three distinct deregulation policies, uniform policy, UK policy, and discriminatory policy. The dynamic equation can deal with the strategic bidding and permit the distinct buying price. According to the simulation results, it is obvious that the unstable priority is uniform, UK and discriminatory policy. Beside that, we also portray the unstable region in the power exchange region. They are useful for congestion management of ISO (Independent Power Operator)