| A steady decline in the cost of wind turbines and increased experience in their successful operation have brought this technology to the forefront of viable alternatives for large-scale power generation. Methodologies for understanding the costs and benefits of large-scale wind power development, however, are currently limited.; In this thesis, a new and widely applicable technique for estimating the social benefit of large-scale wind power production is presented. The social benefit is based upon wind power's energy and capacity services and the avoidance of environmental damages. The approach uses probabilistic modeling techniques to account for the stochastic interaction between wind power availability, electricity demand, and conventional generator dispatch. A method for including the spatial smoothing effect of geographically dispersed wind farms is also introduced.; The model has been used to analyze potential offshore wind power development to the south of Long Island, NY. If natural gas combined cycle (NGCC) and integrated gasifier combined cycle (IGCC) are the alternative generation sources, wind power exhibits a negative social benefit due to its high capacity cost and the relatively low emissions of these advanced fossil-fuel technologies. Environmental benefits increase significantly if charges for CO2 emissions are included. Results also reveal a diminishing social benefit as wind power penetration increases. The dependence of wind power benefits on natural gas and coal prices is also discussed.; In power systems with a high penetration of wind generated electricity, the intermittent availability of wind power may influence hourly spot prices. A price responsive electricity demand model is introduced that shows a small increase in wind power value when consumers react to hourly spot prices. The effectiveness of this mechanism depends heavily on estimates of the own- and cross-price elasticities of aggregate electricity demand.; This work makes a valuable contribution by synthesizing information from research in power market economics, power system reliability, and environmental impact assessment, to develop a comprehensive methodology for analyzing wind power in the context of long-term energy planning. |
