Wind generation is primarily an energy resource, and cannot dispatched like conventional generation. In more traditional utility operations, predictions of system load for the next hour, day, week, etc. are essential for deploying supply resources such as total costs are minimized while maintaining system reliability and security. Incremental costs due to the uncertainty in the timing and quantity of energy delivery from wind generation facilities in operational time frames can be reduced with better short-term wind generation forecasts and appropriate use of those predictions by control area operators and power markets in scheduling functions and real-time
In situations where resource decisions are made by according to various market signals, prediction of wind generation will be important for those who operate the markets and are charged with responsibility for system security and reliability.