The impact of wind power stations in the Brazilian electricity markets

This paper presents a dynamic multistage programming model for the cost-optimal generation for a recent hydrothermaleolic power system implemented in Brazil. Historic outflows are selected with cluster analysis technique adjusted for short-term planning horizon. The impact of wind power plants is analyzed to the Brazilian northeast subsystem considering the observed negative correlation between wind and water outflows. The aim of this paper is to devise computer tools to assist the human operator in his decision-making process, i.e., managing this new hydrothermaleolic system and evaluating the impact of wind energy in the electricity market. To accomplish that, dynamic programming tools based in Benders' Decomposition technique [1] are used with the objective of minimizing the expected value of the operation costs, taking into consideration the restrictions of transmission and generation. Marginal prices are then evaluated to better understand the role of wind power.