Wind Power in Power Markets: Opportunities and Challenges
Conference contribution, 2007
This paper provides a comprehensive review of the opportunities and challenges from trading of wind power in power markets. The opportunities are the low operating costs, government incentive/subsidy program, reduction of market price, reduction of carbon dioxide emission, reduction of network loss, etc. The challenges would be technical requirement for power system integration, high investment cost, increased requirement on regulation power due to wind forecast error, more price volatile, more market competition for other generations, etc. The opportunities and challenges are discussed from different market players’ perspectives. Some suggestions for possible measures to overcome those challenges are presented.