Coupling of day ahead and real-time power markets for energy and reserves incorporating local distribution network costs and congestion

Acknowledging that increasing intermittent clean energy generation is likely to impose a bottleneck in the demand for regulation reserves, we investigate potential increases in the supply of regulation service through enhanced participation of loads in electricity markets. Moreover, we focus on future markets where Loads connected at the distribution network participate extensively and in direct competition with centralized generation whole sale market participants. We focus our analysis to distributed PHEV loads and develop a decision support algorithm for optimal bidding to the existing wholesale as well as to prospective retail/distribution market. We argue that generalization to a broad range of load types is reasonably straight forward.