The flexible demand influence on the joint energy and reserve markets

Advances in control and information technology in electric grids of the future offer new possibilities in the markets for the consumers. Using their flexible demand, not only can they influence the prices in the energy market but can also participate in the system reserve market. In the paper we present a new approach to the stochastic modeling of the demand-side reserve provision in co-optimized day-ahead electricity and reserve markets, where the consumers has the opportunity to participate as a reserve provider. The consumer participates in both markets for the cost reduction and the benefits obtained in them. The approach features a new method for the price determination of the demand-side reserve provision. The approach has been tested on IEEE RTS. The results illustrate the influence of demand flexibility on the ability of the consumers to provide reserve and on their subsequent benefits, including the reduced security cost.