Cost-Causation-Based Tariffs for Wind Ancillary Service Impacts: Preprint

Research output: Contribution to conferencePaper


Conference paper discussing the integration cost of wind. Although specific tariffs for wind generation for ancillary services are uncommon, we anticipate that balancing authorities (control areas) and other entities will move toward such tariffs. Tariffs for regulation and imbalance services should be cost-based, recognize the relevant time scales that correspond with utility operational cycles,and properly allocate those costs to those entities that cause the balancing authority to incur the costs. In this paper, we present methods for separating wind's impact into regulation and load following (imbalance) time scales. We show that approximating these impacts with simpler methods can significantly distort cost causation and even cause confusion between the relevant time scales. Wepresent results from NREL's wind data collection program to illustrate the dangers of linearly scaling wind resource data from small wind plants to approximate the wind resource data from large wind plants. Finally, we provide a framework for developing regulation and imbalance tariffs, we outline methods to begin examining contingency reserve requirements for wind plants, we provide guidance onthe important characteristics to consider, and we provide hypothetical cases that the tariff can be tested against to determine whether the results are desired.
Original languageAmerican English
Number of pages26
StatePublished - 2006
EventWindpower 2006 Conference and Exhibition - Pittsburgh, Pennsylvania
Duration: 4 Jun 20067 Jun 2006


ConferenceWindpower 2006 Conference and Exhibition
CityPittsburgh, Pennsylvania

NREL Publication Number

  • NREL/CP-500-40073


  • tariffs
  • wind
  • wind energy
  • wind plant integration
  • wind power


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