Optimization of wind power capacity in an electricity grid

Within a probabilistic framework, the wind power capacity planning problem is formulated as a chance constrained programming (CCP) problem containing random variables and uncertain constraints. The objective is to maximize the net profit with limitations of the grid system considered. Penalty costs of wind curtailment and load shedding are accounted into the cost evaluation. The system limitations include generation limitations, interconnection capacity constraints, wind power generation penetration limit and system reliability requirement. The practicality and versatility of the proposed approach is verified by the determination of optimal wind power capacity for a typical power system. With the proposed approach, a clear insight into the planning of wind farm capacity in the electricity grid could be investigated to ensure development of an efficient wind market.