Energy Systems

, Volume 5, Issue 4, pp 657–675 | Cite as

The effects of stochastic market clearing on the cost of wind integration: a case of New Zealand electricity market

Original Paper

Abstract

Introducing wind generation into an electricity market can incur an extra cost resulting from the volatile nature of wind. To reduce this cost, an alternative stochastic market clearing mechanism is proposed in the literature (Wong and Fuller in IEEE Trans Power Syst 22(2):631–638, 2007; Pritchard et al. in Oper Res 2010; Bouffard et al. in IEEE Trans Power Syst 20(4):1818–1826, 2005). However, implementing a stochastic market clearing can also impose some extra cost on the market. Therefore, it is essential to estimate the efficiency gain resulting from implementing a stochastic market clearing mechanism. We describe the result of an empirical study to quantify value of a stochastic clearing mechanism for the New Zealand electricity market. We extend our analysis for possible larger wind integration in the future.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  • Javad Khazaei
    • 1
  • Golbon Zakeri
    • 2
  • Geoffrey Pritchard
    • 3
  1. 1.Department of Operations Research and Financial EngineeringPrinceton UniversityPrincetonUSA
  2. 2.Department of Engineering ScienceUniversity of AucklandNew Zealand
  3. 3.Department of Statistics, Science CenterUniversity of AucklandNew Zealand

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