The Impact of Wind Generation on the Spot Market Electricity Pricing

An overview of the impact of renewable energy generation on power system balancing and pricing is provided. The influence of wind generation on the electricity market pricing is perceptible. The pricing at the electricity market depends on renewable energy generation in each region as well as on transmission capacity limitations. The impact that is important for electricity market analysis is exerted by the correlation between wind generation and electricity prices. The mathematical statement of the task includes the calculation of the mean absolute percentage error (MAPE) of the forecast according to the predicted and actual electricity market prices.