Wind Power Pricing Strategy based on Accounting Cost Analysis Approach

Abstract

Wind power generation power system has been increased rapidly in recent years because of its environmental benefits, but the volatility of wind power brought some problems to power system operation, which affects Transmission Company’s willingness to accept the wind power. Although the most serious conflicts influenced the development of wind power, but wind power is still widely applied. The grid prices don't need this fluctuation that influenced system operation. At present, quotas and accesses are widely applied in the provisions of the wind power. Now all wind power output should be accepted by grid, and a guide rate should be obtained. But with the increase of wind power penetration gridded, a more effective price adjustment should be set up for wind power on the consideration of the wind output uncertainties. Using the wind farms in different areas of China as the research object and taking the accounting cost analysis method to calculate the cost of wind power, wind power plants in different areas achieve the same return on investments with coal-fired power plants. These tariffs will receive a basic price of reference by power. The basic factor of wind power prices as the final price paid to the wind power plants is multiplied by a penalty which is a kind of innovation. The accuracy of punishment factor is related with the wind power output. In order to really pay wind power above the basic value demands the wind farm increasing their income, otherwise revenue will be reduced. To illustrate the problem, an example is given. Using this penalty factor will ultimately help stimulate wind farms improving the accuracy of wind power output, the system of stable operation and large wind power penetration ability, and finally promoting the sustainable development of commercial wind farms.