Wind Integration Cost Impact Study for the Arizona Public Service Company: Modeling Approach and Results

Abstract

The objectives of this study were to analyze operating impacts and costs of integrating wind energy in the Arizona Public Service (APS) balancing area, due to the variability and uncertainty of wind energy. Wind energy penetration levels from 1% to 10% were considered, corresponding to wind power levels of 100 MW to 1400 MW. A production cost simulation was conducted using APS system modeling software to assess the costs, by comparing the total production cost of the system with wind energy with a reference case that excludes the variability and uncertainty of wind energy. For APS's system, with an anticipated peak load of 7,905 MW in 2010, the integration costs were $0.91, $3.25, $3.57, and $4.08 per MWh for 1%, 4%, 7% and 10% wind energy. The geographic diversity of locating wind power plants over a large area was considered and found to have an important influence on the total integration cost.

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