LMP estimation considering the uncertainty of wind power

One of the impediments to large-scale use of wind generation within power system is its variable and uncertain real-time availability. Due to the low marginal cost of wind power, its output will change the merit order of power markets and influence the Locational Marginal Price (LMP). For the large scale of wind power, LMP calculation can´t ignore the essential variable and uncertain nature of wind power. This paper proposes an algorithm to estimate LMP. The estimation result of conventional Monte Carlo simulation is taken as benchmark to examine the accuracy. Case study is conducted on a simplified SE Australian power system, and the simulation results show the feasibility of proposed method.