Impact Analysis of Transmission Capacity Constraints on Wind Power Penetration and Production Cost in Generation Dispatch

Wind power penetration in Taiwan power system faces significant barriers due to limited transmission capability. One of the most important future challenges seems to be the management of the integration of fluctuations in the electricity production from wind energy sources. In this paper, a penalty function-direct search method (PF-DSM) is developed to further modify the direct search method (DSM) to improve computation efficiency. The PF-DSM algorithm is used to facilitate economic sharing of generation and reserve across areas, and minimize the total generation cost in the multi-area wind-thermal coordination dispatch problem. Several technique constraints are applied to determine the optimal proportion of wind generator capacity that can be integrated into the multi-area isolated system. Numerical experiments are included to understand the effects of wind generator capacity in production cost analysis and to illustrate the impacts of transmission capacity limits on wind power penetration level in each area.