Wind Power and Future Trading with Regulating Power.

Regulating power is needed to compensate for unplanned deviations from production and consumption plans. The transmission system operator (TSO) in each country is responsible for keeping the electric system balanced, and activates regulation if needed to keep the frequency in the network stable. The need for regulations will likely grow when more wind power is built in the power system, as it is difficult to forecast wind power production and make accurate production plans. By using data on wind power prognosis errors from the West Danish power system, a need for regulating power in the Swedish system is predicted, with 4000 MW of new wind power installed. An attempt is made to forecast pricing on regulating power in Sweden based on the need for regulating power along with other aspects. The results show that the regulating power market energy turnover increases together with the monetary turnover following the large-scale installation of wind power. [ABSTRACT FROM AUTHOR]