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Relying on generation side alone is deemed insufficient to fulfill the system balancing needs for future Danish power system, where a 50% wind penetration is outlined by the government for year 2025. This paper investigates use of the electricity demand as frequency controlled reserve (DFR), which has a high potential and can provide many advantages. Firstly, the background of the research is reviewed, including conventional power system reserves and the demand side potentials. Subsequently, the control logics and corresponding design considerations for the DFR technology have been developed and analyzed, based on which simulation models have been built using the DIgSILENT Power Factory. The simulation studies of different scenarios confirm that the DFR can provide reliable performance of frequency control. Furthermore, relevant issues regarding implementing DFR in reality have been discussed.