Economic assessment of the engineering basis for wind power: Perspective of a vertically integrated utility

If wind park configurations are globally coordinated across the service area of a power utility, then electricity can be generated for the grid with substantial cost advantages. Based on this premise, the paper introduces a model by which large scale assessment of grid connected wind based power generation may be undertaken for a utility service area. The model can be useful to the policy maker for decisions regarding suitable wind portfolio standards (WPS) definition. The utility on the other hand, may use the model to study its service area for prospective wind based generation. Aspects of the problem modelled include cost-of-energy from individual generating units, daily load variations for the utility with emphasis on limited penetration, features of wind at prospective installation sites, makes of wind energy conversion systems (WECS) available, and recovery of expenditure through revenue. Application of the model to an assessment exercise for the state of Andhra Pradesh (India) is presented as an example.