Abstract
This study intends to develop a comprehensive procedure for evaluating locational value of a wind farm project incorporating reduction in transmission system losses, load delivery point interruption cost and operating cost of generating units. The energy extracted from the wind farm in normal operation condition is considered to replace the energy from fossil-fueled conventional units. In addition, composite system reliability analysis in the presence of wind power is carried out to evaluate total costs associated with curtailed energy at different load points as well as generation of generating units in contingency conditions. System reliability analysis related to large-scale wind farms, along with operating cost and transmission losses analysis, can assist policy makers to prioritise wind farm projects based on the total benefits of wind power including reliability benefits and savings in fossil-fueled energy sources.
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