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Future smart power distribution system with multiple active consumers and aggregators exchanging real-time electricity pricing and electricity consumption information over a communication network is prone to cyberattack. The goal of this paper is to understand the impact of attacks on pricing/load signals on the physical grid within a transactive energy market framework. First, this paper models the interaction between real-time electricity price and total energy demand in the form of a discrete time nonlinear autonomous dynamical system. Second, equilibrium electricity price and energy demand associated with this coupled dynamical system is derived and conditions for bounded input bounded output (BIBO) stability are identified. Third, a BIBO stable algorithm to design real-time electricity pricing scheme from a techno-economic perspective is developed. Finally, the impact of various levels of false data injection (FDI) attack on price of electricity, demand, and distribution system voltage is investigated. The proposed model is analyzed using simulations on the IEEE 69-bus test system and the impact of FDI attack on both electricity price/demand and distribution grid voltage is quantified. This paper shows that impact of FDI attack on electricity prices is more severe than an attack on electricity demand.

Stability of Transactive Energy Market-Based Power Distribution System Under Data Integrity Attack