Integration of Wind Power Generation into a Double- sided Competitive Electricity Market For Profit and Social Welfare Maximization

Due to the increase in climatic conditions, the world is moving towards renewable energies. Wind power generation (WPG) is fueled by the wind which is almost free, except the operation and maintenance (O/M) costs, it's a clean, variable and uncertain fuel source, which creates the difficult implications of its integration into the power system. With the continuing demand for an alternative rather than conventional power sources, it is vital to integrate WPG into power systems as it is economically viable for the production cost and the electricity prices in the market. This paper presents interior point method (IPM) to solve the optimal power flow (OPF) problem and the integration of WPG with the variation of wind speed to study its effect on locational marginal prices (LMPs), generation costs, total profit and the social welfare in a doublesided competitive electricity market. All generation companies (GENCO) and distribution companies (DISCO) compete to achieve maximum profit and benefit with their bids to the independent system operator (ISO), simulation is carried out using power system analysis toolbox in MATLAB applied on IEEE 6-bus and IEEE 14-bus systems.