Least cost optimal wind generation capacity in the Australian National Electricity market considering wind integration costs

Wind is widely known as clean energy source that brings environmental benefits. Increasing wind generation beyond a certain penetration level, however can cause negative effects to electrical grids and power systems. The Government needs to balance electricity generation from conventional (e.g. coal, gas and hydro) and intermittent sources (e.g. wind and solar) to maintain power system security and reliability at least cost. Using simulation and optimization techniques, this research examines the economic impacts of integrating large amount of wind power into the Australian National Electricity Market (NEM). The research identifies least cost optimal wind penetration levels for the NEM over the next decade.