“…Furthermore, a carbon price will have no impact on these costs. Although the direct costs of wind power are currently higher than conventional technologies in most countries, it has been suggested that adding wind can help to hedge against fossil fuel and carbon price uncertainty, and therefore reduce the risk of generation portfolios (Awerbuch, 2006;Doherty et al, 2006). This paper employs a novel generation investment decision support tool developed in Vithayasrichareon and MacGill (2012a) to explore the potential impacts of increasing wind penetrations on the expected cost, associated cost uncertainty and carbon emissions of different future conventional generating plant portfolios.…”