Effects of Wind Power plants on Energy Price and Power Systems Reliability in Imperfect Competition Electricity Market

The benefits of wind power generation have led to an ever-increasing expansion of wind farms around the world. The low cost of production and the environmental benefits of wind farms are some of the main reasons for using wind energy. On the other hand, uncertainty costs in the production and control of the output of wind turbines are among the problems that are being encountered for electricity operators and markets. One of the basic measures to increase the penetration of wind power is to study the effects of this penetration on the restructured power grids. In this study, the effects of wind power plants on the market price and power system reliability in generation sector is evaluated in the one-year period.  The proposed method is tested on IEEE-RTS 24 bus network and it will be tried to obtain more realistic results compared to the market and reliability of the network, taking into account the different Reserves percentage and price elasticity of demands. In simulations, the effect of network reservation uncertainty is considered. Also, Monte Carlo simulation is used for wind modeling. This study attempts to compare the results of adding and replacing wind power producers in the grid to assess the changes in the system reliability and market efficiency. The results indicate a positive effect of concurrency of allocation of reserves and proposed schemes on reliability and market efficiency.