spinning reserves.

These ASs increases the reliability of the grid because the response of an aggregation of
a significant number of loads is quicker than some large generators.

2.2 DR participation in Energy Market :

Dispatchable and controllable loads can participate in the wholesale energy market. This latter treats them
as an energy resource. Thus, they are permitted to bid their demand curtailment into day-ahead or real time
markets. If the bid is accepted, the ISO will dispatch the concerned loads to balance the demand and supply
against the energy market price for compensation [1].

Big electricity consumers, namely the industrial ones, can invest in the required technology to equip
themselves with the ability to dispatch and control their load resources through intelligent metering devices.
On the contrary, small consumers face financial challenges to meet those requirements to participate in the
wholesale market [1].

Upgrading DRs to be dispatchable, rather than price-responsive only, contributes to more support to the
electricity supply especially under scarcity conditions.

2.3 DR participation in Ancillary Service Market :

Ancillary Service provides backup to the generation in case a unit goes off. It operates as a reserve capacity
to keep supply and demand balanced on the grid. This is particularly useful when a higher than anticipated
load emerges [1].

The ancillary services were provided mainly by generation units before an interest in DRs as ASs gained
momentum. To be eligible to provide ancillary services, DRs must meet some size requirements. Thus, DRs
are better suited for contingency reserves to maintain the balance between supply and demand which
improves the reliability of the system. Moreover, DRs can regulate frequency through automatic generation
control system AGC [1].

Response of DRs as AS is faster than classical generators typically in seconds to minutes [2].

It is complicated for DRs to send a bid curve for their participation in the AS because of some constraints
like economics, flexibility and availability, and a need to hedge against energy price spike. Usually, the
primary goal for DRs is to provide AS services rather than making a profit [1].

2.4 DR participation in Capacity Market :

The participation of DR in capacity market is a commitment of the participants to curtail their loads when
a needed. Hence, instead of building more generation capacity to meet annual peak demand, DR programs
designed for the capacity market insure a lad curtailment. In exchange for being on call to enhance the