ABSTRACT
In this chapter, the authors introduce the framework and model of power system operation simulation in the software grid optimization planning tool developed by the authors’ laboratory. They demonstrate how it can be used in power system planning studies. Power system operation simulation is a useful tool for evaluating how much extra operating cost is caused by wind power from both the perspectives of the power system operation and the single generator level. Power system operation simulation provides a useful means of assessing the value of energy storage system to the wind power penetrated power system. The effect of wind power on the operating cost of thermal generation can be analyzed from two perspectives: the single unit perspective and the system-wide perspective. Wind power energy substitution effect means that when integrated into a power system, wind power is usually given priority in the dispatch and thus reduces the net output of thermal generation.
