By C. F. Andrews

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We assume that ffi ffi ÁÁ ð13Þ Mean / ep;n ¼ 0 so that the sum of profit/loss is zero on average. Note that we take the sample mean instead of using the expected value operator E, because we will work on empirical data in the next section. Risk Management Tools for Wind Power Trades 47 Fig. 5 An example of loss function Consider a situation in which the seller with /ðÁÞ would like to compensate their loss on ep;n using a weather derivative on the forecast error of the wind speed. , 1 day in advance).

8 Study by Rivas et al. [7] on the impact that site area and number of turbines have on efficiency farm. This trend is highlighted by the two lines in Fig. 8. The relevant finding that is worthwhile noting here is that by using their method one finds higher quality solutions for the 64 turbine problem (they are on the upper half-plane of the line) but not for the 106 turbine problem (they lie on the line). g. g. 106 3 MW turbines). Although this property may hold only for their method, it may hide a more general property, which is valid for any method: the chosen layout strongly impacts the quality of the solution if we install few turbines or, equivalently, the chosen layout does not strongly impact the quality of the solution if we install many turbines.

Unfortunately, an assembled crane cannot be transported on public roads, and therefore it must be disassembled, transported through the public road to another subnetwork, and reassembled. Although it is hard to obtain the cost of this operation (wind farm developers do not release information on costs), it is estimated to be tens of thousands of dollars. Finally, there are other setback constraints that usually impose restrictions on the turbine locations. For example, turbines cannot be installed too close to houses, military facilities, airports, or boundaries of a noncooperative landowner.

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