Keywords: electricity market, power trading, wind power, wind energy, wind farms, market mechanisms
Wind power in electricity markets: key issues and challenges
Due to the large penetration and continuous improvement in the wind power technology, wind farms are asked to operate similar to the conventional power plants. In emerging electricity market, wind power generators are now seen differently and should sustain with/without limited government support. Although cost reductions due to technological improvements bring wind power in competitions to conventional fossil-fuel generation, but until now various incentives are required to overcome wind power's cost disadvantage and these incentives may play a significant role in improving the competitiveness of wind power. However, the use and trade of wind power in the market is complicated because of the lack of guarantees of generation, mainly in the wind farms. This paper discusses several key issues and challenges which can be faced by the wind power in the competitive power market. With suitable market mechanism, wind power can be helpful in mitigating the market abuse up to some extent.