|Title||Selling Random Wind|
|Publication Type||Conference Paper|
|Year of Publication||2012|
|Authors||Eilyan Bitar, Kameshwar Poolla, Pramod P Khargonekar, Ram Rajagopal, Pravin Varaiya, Felix Wu|
|Conference Name||2012 45th Hawaii International Conference on System Sciences (HICSS)|
|Conference Location||Maui, HI, USA|
|Keywords||CERTS, electricity markets, reliability, reliability and markets, renewables integration, RM11-006|
Wind power is inherently random, but we are used to 100 percent reliable or 'firm' electricity, so reserves are used to convert random wind power into firm electricity. The cost of these reserves is frequently a hidden subsidy to wind power producers. We propose an alternative: package random wind power into electricity with different levels of reliability and sell them at different prices. This variable-reliability market is more efficient than the current firm-electricity market, and may require lower subsidy. However, we have to think of electricity differently. We also explore interesting differences between the variable-reliability and related real-time markets.