Market Design for Increased Wind Generation

This project will address challenges to market design and rules presented by the expansion of wind generation capacity. In this project we will be simulating and analyzing the short-run impacts of expanded wind generation on market outcomes in Alberta, including prices and emissions. This analysis will compare and contrast different potential policy responses to expanded wind generation. We will also be developing methodology for the simulation and analysis of long-run effects (including investment) of wind expansion, taking into account market power, the role of market transparency, congestion and forward transactions. Our research is expected to contribute to the design of markets to facilitate wind integration in many jurisdictions.