Determining the Capacity Value of Wind: A Survey of Methods and Implementation; Preprint

Regional transmission organizations, state utility regulatory commissions, the North American Electric Reliability Council, regional reliability councils, and increasingly, the Federal Energy Regulatory Commission all advocate, call for, or in some instances, require that electric utilities and competitive power suppliers not only have enough generating capacity to meet customer demand but also have generating capacity in reserve in case customer demand is higher than expected or if a generator or transmission line goes out of service. Although the basic concept is the same across the country— ensuring enough generating capacity to meet customer demand for electricity—how it is implemented is strikingly different from region to region. Related to this question is whether wind energy qualifies as a capacity resource. Wind’s variability makes this a matter of great debate in some regions. However, many regions accept that wind energy has some capacity value, albeit at a lower value than other energy technologies. Recently, studies have been published in California, Minnesota,