Multi-area economic generation and reserve dispatch considering large-scale integration of wind power

Wind power penetration in Taiwan power system faces significant barriers due to limited transmission capability. One of the most important future challenges seems to be the management of the integration of fluctuations in the electricity production from wind energy sources. The problem is further complicated by the generation dispatch imposed by the presence of transmission capacity limits. Several new important concepts about economic dispatch (ED) model are investigated in this paper for the large-scale wind capacity integration. A penalty function-hybrid direct search method (PF-HDSM) is also developed for the solution of multi-area wind-thermal coordination dispatch (MWCD) problem. Several important issues of wind capacity integration in the Taiwan power system are discussed by using the developed MWCD software. Numerical experiments are included to illustrate the impacts of transmission capacity limits on wind power penetration level in each area and to assess the impact and economic benefits of the installation of wind farms for the Taiwan power system.