A comparative study of electricity price variations with wind energy penetration

This paper aims to compare the effect of wind energy penetration on electricity prices by considering different levels of installed wind capacities. The market clearing problem is formulated as a two stage stochastic optimization problem, where the first stage represents the clearing of the market with scheduled wind production and the second stage models the balancing market operations with different possible wind energy scenarios. A comparison is made between the size of the system and the price variations by taking three different test systems.