A Market Based Scheme to Integrate Distributed Wind Energy

Efficiently integrating wind energy into the smart grid is gaining momentum under renewable portfolio standard (RPS) with deep wind penetration. Due to the randomness of wind energy production, ancillary service (AS) is needed in large amount to regulate wind power for system stability and reliability. As a result, the cost of wind power depends on the AS market and may be, quite higher than that of conventional power. Therefore, it is challenging to economically integrate wind energy with current power system to satisfy RPS. With the communication, sensing and advanced control features incorporated into the smart grid, the interactions among the grid components will facilitate solving this problem. In this paper, we consider the wind energy integration of small-scale utilities installed with wind turbines and acted as distributed energy resources (DERs). Since wind energy can be integrated to serve customer load or enter a separate green energy market, we propose a theoretical framework to dynamically determine the role of wind energy and provide long-term RPS guarantee. This approach results in a simple dynamic threshold control policy which maximizes the expectation of the profit for a green utility and is easily implemented online.