System security and the real costs

Integration of electricity production from wind plant into the world's power systems is not so much a technical but an economic challenge. A clear understanding of how

little reserve generation is needed to maintain system security -- even with the extra uncertainty of a fluctuating supply -- is a

vital part of that exercise. Competitive

markets, with their focus on cost, are

discovering how cheap wind integration can be. The real cost, however, is being inflated by poor market structures everywhere. In some countries, false market prices are even being regarded as the real cost with which wind should be burdened.

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