Optimal wind installation considering capacity and energy credits

Renewable energy applications are rapidly increasing in electric power generating systems. The key factors influencing their rapid growth are public support due to environmental concerns, leading to governmental policies implemented to promote renewable energy applications. Recent technological developments in wind turbines have resulted in large scale applications including supplying power to the grid system. Various planning and operating problems will arise as wind power penetration continues to increase. It is very important to determine the optimal level of wind penetration in a power system. This paper presents a Monte Carlo simulation method that considers both the economics and reliability aspects in system generation planning in order to determine the optimal wind penetration in a given power system. The technique is applied to test systems in order to illustrate the results. The paper provides useful information to system planners in deciding appropriate wind power penetration for a given system.