ABSTRACT
ABSTRACT This chapter introduces several two-stage stochastic programming models in order to procure energy and reserve services from the demand side to cope with uncertainty introduced by increasing renewable energy sources (RESs) penetration into the power system. The variable and uncertain nature of the leading RESs, such as wind power generation, calls for the development of a sophisticated balance mechanism between supply and demand to maintain the consistency of a power system. Especially, the reliable and economic operation of insular power systems may be jeopardized due to the limited flexibility of conventional power sources. The twostage stochastic optimization models are developed with the aim of procuring the required load-following reserves from both generation and demand-side resources under high wind-power penetration. A novel load model is introduced to procure flexible reserves from industrial clients. The economic model of responsive demand and a model describing an aggregation of plug-in electric vehicles (PEVs) are also discussed in this chapter. The proposed formulations are evaluated through various simulations and different case studies performed on the insular power system of Crete, Greece.
