Optimal Market Strategies in Energy Systems with High Penetration of Wind Power

The ever-increasing penetration of renewable energy resources (RERs), specifically wind power generation (WPG) into the power grid has significantly changed the operation of power systems. Integration of large-scale WPG creates different challenges for the power systems, hence obliging them to provide sufficient flexibility to accommodate uncertainties arisen from the unpredictable nature of WPG. To this end, providing higher operating reserve capacity for the power system is motivated for large scale integration of intermittent WPG. The other alternative for addressing this issue is demand response management, an economically and practically efficient way for providing flexibility, which has emerged as a key concern in practice and has become the focus of many works. This thesis proposes a novel method to incorporate the reserve capacity for the wind power producers (WPP) in the electricity market. At the next step, it presents a novel and comprehensive model for demands to investigate their strategic behavior in the electricity market while there is a large share of WPG in the system.