Optimal Participation of a Wind Power Producer in a Transmission-Constrained Electricity Market

Wind generation is clean and cheap. However it forces the independent system operator to buy more reserves in order to maintain system security in a specified level. Therefore, two different forces exist to determine the optimal amount of wind power in the market. One of them is the low marginal cost of wind producers and another one is reserve increase which can raise the market price. The paper adopts linear programing to find the optimal amount of wind, considering transmission constraints, ramp-rate constraints of conventional generators and reserves. The analyses are considered to be from the system operator's view point. Finally, optimal participation of producers are calculated and discussed for IEEE 30-bus system.