Modifying Market Rules to Accommodate High Penetrations of Wind Energy

The installed capacity of wind driven generators in New York State is projected to grow from about 200 MW to as much as 2800 MW over the next ten years. Wind power promises an inconstant and largely uncontrollable source of clean and inexpensive energy. Integration of this attractive but relatively volatile resource in an electricity market demands careful consideration of the forecasting, scheduling, financial settlement, and performance monitoring functions that are inherent to the operation of an electricity market. This paper examines these issues in the context of a two-settlement electricity market such as the one operated in New York by the New York Independent System Operator (NY-ISO)