Incorporating reserve supplying demand response in customer's decision making model for simultaneous energy and reserve markets

In this letter, the customer profit-maximization-model is expanded to incorporate the probabilistic profit of reserve supply. This extended model will change the customer behavior and therefore will affect the system performance. The analysis of the extended model is carried out to show how this model, considering energy and reserve market parameters, affects the customer decision. © 2012 Institute of Electrical Engineers of Japan. Published by John Wiley & Sons, Inc.