Wind Power Forecasting and Electricity Market Operations

Abstract

In this paper we give a brief overview of wind power forecasting models and how they are used in power system and electricity market operations. We focus on the organized electricity markets in the United States, where several independent system operators (ISOs/RTOs) have recently introduced wind power forecasting systems as part of their operations. We find that wind power forecasting is already used for a number of important applications. However, as the amount of wind power capacity is rapidly increasing, there is a need to better integrate wind power forecasting into different parts of power system operations, from determination of operating reserve requirements to unit commitment and dispatch decisions. It is also important that wind power forecast providers tailor their products to meet the specific needs of the system operators.