Estimating real-time balancing prices in wind power systems

As the amounts of installed wind power increases in the power system, the required real-time balancing quantities increases because of the unpredictability of wind power production. Real-time balancing power is usually provided through various market solutions and thus, the prices on such markets will be affected by the increase in wind power production. Consequently, there exist a need for planning and simulation tools concerning the increased balancing demand. This paper therefore describes an estimation model for real-time balancing prices in systems where significant levels of wind power will be added. The model is divided into two steps: The first estimating the changes in required real-time balancing quantities, and the second calculating the corresponding price changes.