Integrating the Energy Markets in North - America : Conditions Helping Large - scale Integration of Wind Power ?

The intermittency of wind resources may appear as an important handicap for integrating large-scale wind power in existing grids. However, in Canada and the United States, studies show that coordination between interconnected power systems can be economically beneficial for both the wind power and electric utility industries if some power system management and market rules are applied. In order to avoid power shortage, our results show that the primary condition helping large-scale integration of wind power is related to changes in market structure rules. If the system is operated in an optimal coordinated manner, on a daily basis for example, the addition of wind power can better optimize the economic operation of the overall system, thereby hopefully increasing revenues from wind power projects, and decreasing costs for the utility and its rate payers. This paper first presents the main elements of the generation optimization model used to compute the benefits of integrating wind power in: a) a hydro-based system (using the largest power system in Canada as a test case; and b) a thermal-based system (using Vermont as a test case). Further, the authors discuss the conditions and rules needed in the generation model to alleviate operational limitations and constraints frequently associated with the intermittent nature of wind. These conditions include market rules, utility management practices, physical constraints like transmission capacities, load profiles, storage characteristics, wind resource patterns, wind power forecasting, and many other aspects.