  This paper studies real-time bidding mechanisms for economic dispatch and
frequency regulation in electrical power networks. We consider a market
administered by an independent system operator (ISO) where a group of strategic
generators participate in a Bertrand game of competition. Generators bid prices
at which they are willing to produce electricity. Each generator aims to
maximize their profit, while the ISO seeks to minimize the total generation
cost and to regulate the frequency of the system. We consider a continuous-time
bidding process coupled with the swing dynamics of the network through the use
of frequency as a feedback signal for the negotiation process. We analyze the
stability of the resulting interconnected system, establishing frequency
regulation and the convergence to a Nash equilibrium and optimal generation
levels. The results are verified in the IEEE 14-bus benchmark case.
