Grid-integration Subsidy Policy Based On The Undulating Nature Of Wind Power Output

China’s wind power industry has grown up gradually since the last decade, becoming one of the major driving force behind the global wind power industry and playing a leading role in the wind power market. However, new challenges keep cropping up while the whole industry enjoying rapid development in recent years. The problem of integrating wind farms into the grid, brought by the undulating nature of wind power, remains thorny and wind power abandoning has reached an unprecedented scale in2012. Rethinking and changes are in urgent demand at this moment. The future of China’s wind power industry relies in if we can overcome the bottleneck of integration issues.First, this paper will summarize the experiences of foreign developed countries and compare them with the domestic policies in promoting the wind power industry. Then, a storage-regulation system will be established to estimate the quantity of storage facilities required to maintain the stability of wind power output. Next, a cost function will be introduced to simulate the integration cost, so we get the exact amount of integration subsidy. And using the fixed price model, this paper will attribute integration cost between wind farm and grid, aiming at keeping the total amount of subsidy as low as possible while keeping the same wind power capacity. At last, we can provide an advice for the government to promote the process of integration by subsidy policy.