Stability constrained incentive design for distributed frequency control of power grid

In this paper, we consider the problem of stability constrained incentive design for distributed frequency control of multi-machine power systems. We aim to design incentive mechanisms under which control authorities are incentivized to implement distributed controllers which can ensure frequency stability. To solve the problem, we propose a reward based mechanism and determine a lower bound on the rewards such that the induced Nash equilibrium realizes the above objective on dynamic behavior of power grid.