Frequency Control in Power System Based on Balancing Market Considering Wind Power Forecasting Error

In power systems with a large amount of wind power plants, frequency management is an important issue. Particularly, uncertain output depending on weather condition gives a large impact on frequency regulation. In this paper, we proposed a frequency control method in power systems based on balancing market with applying a penalty to forecasting error of the wind power output. Based on the situation in supply and demand balance in the power system, it is assumed that the owners of the wind power plants may find the optimal output which maximizes the owners' benefit with considering output curtailment and penalties corresponding to the forecasting error. It is the goal to maintain system frequency more efficiently, which means the better supply and demand balance. We performed a simulation based on power system model including generator dynamics, network and balancing market in order to confirm the variation in frequency. In addition, we calculated the price signal to be given to players in the balancing market and penalties with respect to players including generators, customers and the owners of wind power plants in the balancing market.