Economic Evaluation of Short- Term Wind Power Forecasts in ERCOT: Preliminary Results

Historically, a number of wind energy integration studies have investigated the value of using day-ahead wind power forecasts for grid operational decisions. These studies have shown that there could be large cost savings gained by grid operators implementing the forecasts in their system operations. To date, none of these studies have investigated the value of shorter-term (0 to 6-hour-ahead) wind power forecasts. In 2010, the Department of Energy and National Oceanic and Atmospheric Administration partnered to fund improvements in short-term wind forecasts and to determine the economic value of these improvements to grid operators, hereafter referred to as the Wind Forecasting Improvement Project (WFIP). In this work, we discuss the preliminary results of the economic benefit analysis portion of the WFIP for the Electric Reliability Council of Texas. The improvements seen in the wind forecasts are examined, then the economic results of a production cost model simulation are analyzed.