Integration of Stochastic Power Generation, Geographical Averaging and Load Response

The objective of this paper is to analyze how the variability of wind affects optimal dispatches and reserves in a daily optimization cycle. The Cornell SuperOPF1 is used to illustrate how the system costs can be determined for a reliable network (the amount of conventional generating capacity needed to maintain System Adequacy is determined endogenously). Eight cases are studied to illustrate the effects of geographical distribution, ramping costs and load response to customers payment in the wholesale market, and the amount of potential wind generation that is dispatched. The results in this paper use a typical daily pattern of load and capture the cost of ramping by including additions to the operating costs of the generating units associated with the hour-to-hour changes in their optimal dispatch. The proposed regulatory changes for electricity markets are 1) to establish a new market for ramping services, 2) to aggregate the loads of customers on a distribution network so that they can be represented as a single wholesale customer on the bulk-power transmission network and 3) to make use of controllable load and geographical distribution of wind to mitigate the variability of wind generation as an alternative to upgrading the capacity of the transmission network.