ABSTRACT
With the rapidly growing interest in wind power generation and the simultaneous emergence of resource adequacy policies, it is natural to ask how to account for the value of wind generation from a capacity perspective. Resource adequacy requirements are one of a number of policy initiatives designed to assure the smooth functioning of wholesale electricity markets. With adequate reserves, the vulnerability of electricity markets to market power is reduced. This chapter reviews recent work on how to measure the capacity value of wind generation and demonstrate the principal sensitivities underlying calculations like effective load carrying capability (ELCC) calculations. It addresses the issue of how to account for wind power generation from the resource adequacy perspective. The chapter discusses a useful concept from the power system engineering literature, ELCC, that has been applied to this problem.
