by Fabien Roques, Céline Hiroux and Marcelo Saguan
- Geographic diversification of wind farms can smooth out the fluctuations in wind power generation and reduce the associated system balancing and reliability costs. The paper uses historical wind production data from five European countries (Austria, Denmark, France, Germany, and Spain) and applies Mean-Variance Portfolio theory to identify cross-country portfolios that minimize the total variance of wind production for a given level of production.
Roques, F. (2009). "Optimal Wind Power Deployment in Europe: a Portfolio Approach." Electricity Policy Research Group Working Paper EPRG0911, April 2009.