Estimating the Price Impact of Proposed Wind Farms in Competitive Electricity Markets

It has been proven extensively in the literature that higher availability of wind generation reduces electricity prices. However, the impact on electricity prices of an individual wind farm under different conditions has yet to be explored. In this paper, a data-driven approach is proposed for analyzing the effect on wholesale electricity prices of integrating a new wind farm into the grid. First, the price impact of previously integrated wind farms into the system is modeled. Then, an algorithm is proposed to estimate the future impact of proposed wind farms on electricity prices. Numerical results based on Alberta's electricity system are provided.