Resource scheduling in deregulated market with uncertain wind energy generation

Ever increasing thrust on exploration of new and renewable energy resources resulted in remarkable capacity additions of wind energy generators. Now, the challenge that is being faced by electricity markets in accommodating available wind power is with the inheritant uncertainty associated with wind generation. In this paper, such uncertainty is handled by assessing the risk of independent system operator (ISO)/ transmission system operator (TSO). The risk of scheduling uncertain wind energy is modeled as balancing cost for ISO in real time market as a function of expected real time energy bids of conventional/thermal generators. The proposed approach is simulated on IEEE 30 bus system and results are compared with deterministic scheduling approach. The effectiveness of proposed approach for wind energy scheduling in day ahead (DA) market is reflected in reduced cost for system operator. It is also observed that, cost savings for ISO increased with an increase in wind uncertainty. However, the cost effectiveness of wind scheduling has reduced the scheduled wind energy in DA market. Therefore, percentage of savings increases with uncertainty margin in the forecasted wind energy at a cost of reduction in scheduled wind energy in DA market.