Electricity price variations in a power system with wind energy penetration

This paper aims to give the variations of electricity price by considering the effect of wind energy integrated into the system and also the system variations such as load demand, outages and congestion. The electricity market is cleared by using a two stage stochastic optimization model in which first stage represents the scheduled case and the second stage represents the deviations from the scheduled case caused by uncertainty in the production of wind energy, this stage is considered as the balancing market operation. IEEE 24 bus test system is considered in different system conditions with 26.3% of wind energy penetration to study the price variations.