Analyzing the impacts of increased wind power on generation Revenue Sufficiency

The Revenue Sufficiency Guarantee (RSG), as part of make-whole (or uplift) payments in electricity markets, is designed to recover the generation resources' offer-based production costs that are not otherwise covered by their market revenues. Increased penetrations of wind power will bring significant impacts to the RSG payments in the markets. However, literature related to this topic is sparse. This paper first reviews the industrial practices of implementing RSG in major US independent system operators (ISOs) and regional transmission operators (RTOs), and then develops a general RSG calculation method. Finally, an 18-bus test system is adopted to demonstrate the impacts of increased wind power on RSG payments.