Real time pricing cost and value of wind generation

Abstract

Wind energy is expected to play an important role in electrical energy generation. This project presents an economic feasibility study of a wind power generation plant project in Kuala Perlis. The study site of this proposed project is located along the coastal area of Kuala Perlis. The type of wind turbine is selected based on the performance which is best fit for local wind speed sample obtained from Malaysian Meteorological Department. Wind turbines were installed in an area of 1 hectare with optimal capacity. The economic analysis performed by HOMER software showed that the development of wind power generation plant which sells electricity to national grid under feed in tariff is achievable. However, the study site with low wind speed indicates significantly higher electricity cost at around RM0.60/kWh. In order to promote wind power generation in Kuala Perlis, Real Time Pricing is needed to reduce electricity cost by performing load shifting to improve energy efficiency. Nonetheless, this solution is not practical to tackle the issue of high electricity cost. Alternatively, designs improvement for the blade, rotor and generator of wind turbine shall be a better path that leads wind power to be fully commercialised.