Simulating the Impact of Wind Production on Locational Marginal Prices

This paper analyzes the impact of wind production on the locational marginal prices of a fully competitive pool-based electricity market. Wind productions are modeled as negative loads and characterized by historical data records. The analysis pertains to the structural relationship between wind production and locational marginal prices, and disregards the collateral effect of strategic offering. The study presented allows a statistical characterization of locational marginal prices as a function of the statistical data of the wind plants and the structure of the considered electric energy system.