Pricing Wind Power Uncertainty in the Electricity Market

The volatile and intermittent nature of renewable energy sources (RES) has a critical impact on electric power grid operations. However, there still lacks model to price the uncertainty in electricity markets. This paper aims propose quantify RES system operating costs an market environment considering use flexible ramping (FR) products, compensation for wind curtailment, cost load thus offer method RES. is based stochastic optimization operations FR calculated by comparing dispatch as well curtailment with without uncertainties. was implemented modified RTS-96 test high penetration energy, output represented using three different distributions, namely, Gamma, Weibull, Rayleigh. Results show that increases costs, modeling can affect pricing up 5%. shows need operators choose appropriate distribution when uncertainty.