Cost benefit analysis for wind power penetration

Wind power has become a candidate to replace some or part of the conventional generation to meet the continually increasing electricity demand. Yet, the stochastic nature of the wind speed and the rapid changes of wind turbine output increases the complexity of planning and operation of power systems. In this paper, a cost benefit analysis is developed for measuring the benefits of integrating wind farms with the grid. The analysis considers both the dynamic operations and the reliability of the system. The dynamic operation of the system is considered to be the economic cost and the environmental impact. Both categories are converted to one, using market prices for emission levels. The system reliability is assumed to be a disjoint objective and is evaluated separately, and then the economic impact for the reliability is evaluated using the expected damage cost (EDC). The system analysis for the dynamic operation is performed over the yearly load profile on the IEEE RTS-79 system, with an hourly output of wind. The results for the system reliability and the environmental-economic dispatch are presented, and the performance for different wind penetration at different buses is analyzed and discussed.