Integrating power and reserve trade in electricity networks

As power markets become liberalised and include more intermittent generation, the trade of reserve energy will become more important. We propose a novel bidding mechanism to integrate power and reserve markets. It facilitates planning for bidding in both markets and adds expressivity to reserve bids\footnote{This work is a part of the IDeaNeD project and sponsored by Agentschap NL, a research funding agency of the dutch ministry of economic affairs, in the IOP-EMVT program. It has also been presented at the AAMAS 2011 conference.