Incentivizing the Impact of Flexibility and Evasion of Reserves in a Power Market

The declining production cost of stochastic energy is making the electricity power market increasingly competitive and it is a sustainable choice for pollution free environment in comparison with the conventional sources. With the penetration of stochastic production along with the conventional generators, flexibility is needed with the aim of balancing the consumption and production in energy markets after the day ahead markets are scheduled to maintain the system frequency due to its uncertain nature. The aim of this paper has been revealed through a six-bus system which focuses to maximize the social welfare or to minimize the cost through scheduling of up and down reserves with the impact and evasion of the ancillary services.