Alternative Methods of Modeling Wind Generation Using Production Cost Models

This document examines the methods of incorporating wind generation in two production costing models: one is a load duration curve (LDC) based model and the other is a chronological-based model. These two models were used to evaluate the impacts of wind generation on two utility systems using actual collected wind data at two locations with high potential for wind generation. The results aresensitive to the selected wind data and the level of benefits of wind generation is sensitive to the load forecast. The total production cost over a year obtained by the chronological approach does not differ significantly from that of the LDC approach, though the chronological commitment of units is more realistic and more accurate. Chronological models provide the capability of answeringimportant questions about wind resources which are difficult or impossible to address with LDC models.