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Due to the principle of supply and demand, the real-time electricity price in the German spot market varies throughout a single day. Since wind power is non-controllable and partially unpredictable, it is difficult to schedule its power output. Suppliers lose profits by not taking full advantage of the price variation. Moreover, the forecast errors can represent a financial risk, in case of the provision...
Transmission system operators have to buy control power to cover deviations in energy production of wind power plants due to prediction errors. The risk of errors is immanent to any prediction. This leads to financial risks, especially for the unexpected large deviations. Therefore large-scale integration of wind power could oblige the system operator to allocate more spinning and supplemental energy...
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