One of the important measures to reduce wind curtailment and the cost of renewable energy accommodation is to improve the accuracy of wind power forecast. How to enhance the grid's capability of integrating renewable energy via mechanism design

so as to reduce the cost of renewable energy accommodation? This has become an imperative question to be answered. To this end

this paper designs a mechanism to encourage wind farms to improve the accuracy of power forecast and accommodation of renewable energy

and proposes the corresponding model and method. First

the interval method is used to finely measure the increased system operating costs corresponding to renewable energy accommodation. Probability distribution of wind power becomes straightforward via cost expressions. Based on this

the mechanism of fair and non-linear cost allocation among wind farms is designed. The mechanism satisfies the incentive compatibility. Wind farms are encouraged to improve their accuracy of submitted day-ahead forecast wind power and optimize operations and management. A case study based on an IEEE 30-bus system indicates the effectiveness of the proposed mechanism. This work is supported by National Key Technology R&D Program of China (No. 2013BAA01B02)

National Natural Science Foundation of China (No. 51407100) and Post doctoral Science Foundation of China (No. 2014M560969).