The value of intermittent wind DG under Nodal Prices and Amp-mile Tariffs

Abstract

In this paper we apply the recently proposed Nodal Pricing and Amp-Mile tariffs for distribution networks to the case where a wind distributed generator is located in the network. The ability of this tariff structure to capture the real cost and benefits of DG is analyzed for this case of intermittent generation using real wind and network data from Uruguay and a standard wind turbine. A comparison is made in relation to the case with no DG placed in the network, to the case with controllable DG and to the case of intermittent DG of different capacity factors. We find that in expectation intermittent wind DG does little to reduce overall line losses or reduce peak line utilization. Consequently, under Nodal Pricing and Amp-Mile tariffs the intermittent wind resource collects very little additional revenue over the case where the intermittent wind DG source is simply paid the price of power exclusive of losses and is not compensated for freeing up network capacity.