For both regulated and deregulated electric power markets, due to the integration of renewable energy generation and uncertain demands, both supply and demand sides of an electric power grid are volatile and under uncertainty. Accordingly, a large amount of spinning reserve is required to maintain the reliability of the power grid in traditional approaches. In this paper, we propose a novel two...

Demand response has gained significant attention in recent years as it demonstrates potentials to enhance the power system’s operational flexibility in a cost-effective way. Industrial loads such as aluminum smelters, steel manufacturers, cement plants, and air separation units demonstrate advantages in supporting power system operation through demand response programs, because of their intensi...

This paper proposes the allocation of operating reserve in power systems through competitive capacity markets using a probabilistic approach. The insurance features of operating reserve are used to derive a valuation model that is analytically consistent and reflects the economic value of increased reliability to customers. The model can be expressed in the form of a demand curve for operating ...

wind power generation is variable and uncertain. in the power systems with high penetration of wind power, determination of equivalent operating reserve is the main concern of systems operator. in this paper, a model is proposed to determine operating reserves in simultaneous market clearing of energy and reserve by stochastic programming based on scenarios generated via monte carlo simulation ...