Abstarct: In this thesis, impact of spatio-temporal correlation of wind production on imbalance cost in real-time market is statistically analyzed. To achieve this goal, the market clearing problem of real-time market is formulated. Wind power production is modeled as negative electric load. Electric load is assumed to be inelastic. Inter-temporal constraints of generating units and transmission limitations are incorporated into the market clearing model of the real-time market. Wind power uncertainty is modeled through a set of scenarios baxsed on spatio-temporal correlation of wind production captured from historical real-world data. Simulation results are provided through IEEE 24-bus Reliability Test System. The impact of spatio-temporal correlation of wind power production on real-time market price and associated imbalance cost is statistically considered. Additionally, its impact on imbalance cost incurred by wind producers under single- and dual-price settlement mechanisms is studied. Results obtained in different cases show that expectation of revenue (cost) resulting from wind power generation excess (deficit) in single-price settlement mechanism are more (less). However, difference of standard deviation of wind producers’ revenue (cost) in these two settlement mechanisms can be positive or negative depending on the forecast error of wind power production.