Wind as a price-maker and ancillary services provider in competitive electricity markets

Abstract

Electricity markets are currently evolving to accommodate large scale penetration of wind generation. In this research, potential changes to the classification and role of wind generators in the Single Electricity Market (SEM), the market for Northern Ireland and the Republic of Ireland, are examined. The effect of wind generators opting to become price-making and the potential for wind generators to provide positive spinning reserve is investigated. By submitting bids for available generation, price-making wind generators can increase their revenues from the market and influence the average electricity price. Results also show reduced emissions and systems costs arise in allowing wind to provide spinning reserve.