Journal article
A Transmission-Cost-Based Model to Estimate the Amount of Market-Integrable Wind Resources
In the pursuit of the large-scale integration of wind power production, it is imperative to evaluate plausible frictions among the stochastic nature of wind generation, electricity markets, and the investments in transmission required to accommodate larger amounts of wind. If wind producers are made to share the expenses in transmission derived from their integration, they may see the doors of electricity markets closed for not being competitive enough.
This paper presents a model to decide the amount of wind resources that are economically exploitable at a given location from a transmission-cost perspective. This model accounts for the uncertain character of wind by using a modeling framework based on stochastic optimization, simulates market barriers by means of a bi-level structure, and considers the financial risk of investments in transmission through the conditional value-at-risk.
The major features of the proposed model, which is efficiently solved using Benders decomposition, are discussed through an illustrative example.
Language: | English |
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Publisher: | IEEE |
Year: | 2012 |
Pages: | 1060-1069 |
ISSN: | 15580679 and 08858950 |
Types: | Journal article |
DOI: | 10.1109/TPWRS.2011.2177281 |
ORCIDs: | Pinson, Pierre and Madsen, Henrik |
Benders decomposition Indexes Investments Mathematical model Production Stochastic processes Wind Wind power generation economic appraisal electricity market financial risk investment market barrier simulation market-integrable wind resource amount estimation plausible friction evaluation power generation economics power markets power system simulation power transmission economics stochastic optimization stochastic programming transmission expansion transmission-cost-based model wind generation stochastic nature wind power wind power plants wind power production integration