Participation of Wind Power in LMP-Based Energy Markets

Since the advent of the integration of wind power technologies into power systems, power system operators have developed numerous strategies to accommodate its impacts. At low penetrations, many system operators will treat wind power as negative load, in that it is planned for as a fixed value, not as an option to assist in the optimal dispatch solution. However, a number of system operators have recently seen the benefits of allowing wind power to be part of the optimal dispatch or commitment solution. This paper discusses the potential societal benefits to the energy market by allowing the economic dispatch of wind generation in times when it may enhance reliability and be economically advantageous to do so.