June 10, 2002—A recent report by Platts Research and Consulting’s E Source Green Energy Service, says that newly developing wholesale power markets are well suited to incorporate wind generation.
“Utilities considering developing wind generation don’t need to ask whether it’s technically feasible to integrate wind generation into wholesale marketsit is,” said Eric Hirst, co-author of the report.
Such integration is increasingly possible because of the open and competitive wholesale-energy markets now developing around the country. “These markets have considerable flexibility, which can accommodate the lack of control, unpredictability, and volatility inherent in wind-farm output,” says Hirst.
The report, Wind Energy: Integrating an Intermittent Resource, explores the technical and economic questions that are being raised as a result of the rapid development of wind energy.
Just over 1,700 megawatts (MW) of wind generation was added to the U.S. electric grid in 2001a 65% increase in wind capacity in just one year. Technological advances, favorable tax credits, and state policies mandating renewable generation have all contributed to this rapid development of wind generation.
The report states that the real issue for utilities and wind generation developers and policy makers is the increased system cost of integrating wind energy.
Platts is the energy information, research, consulting and marketing services business of The McGraw-Hill Companies.
