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Availability of wind energy which differs across locations primarily determines the appropriate location for installing windfarms. However, the grid location of windfarms must always be considered in an attempt to accurately quantify the benefits which can be achieved from windfarms during their lifetime operation to the supply network. The value of wind power is significantly affected by their penetration and concentration, and is further affected by their location within a network. This is because the location and penetration level of wind generation will result in a significant impact on power-flow distribution across the network. The objective of this paper is to measure the impact of grid location of windfarms on economic and operational parameters of a power system in the lifetime of a windfarm project. This paper first develops an assessment tool to quantify the economic and operational impact of wind power in the grid. This is followed by developing different scenarios in which different penetrations of wind power are installed at different locations in the grid, and it shows how the value of wind power is affected by location and network constraints.