Market integration of wind power in electricity system balancing

In most countries markets for electricity are divided into wholesale markets on which electricity is traded before the operation hour, and real-time balancing markets to handle the deviations from the wholesale trading. So far, wind power has been sold only on the wholesale market and has been known to increase the need for balancing. This article analyses whether wind turbines in the future should participate in the balancing markets and thereby play a proactive role. The analysis is based on a real-life test of proactive participation of a wind farm in West Denmark. It is found that the wind farm is able to play a proactive role regarding downward regulation and thereby increase profits. Keywords: Electricity market, Balancing service, Wind power integratio