Abstract—The increase of wind energy penetration due to variability nature will seriously affects the electric grid and presents many problems in compare with conventional ones. To reduce some difficulties and encourage the integration of wind power is to use demand response (DR) to balance intermittent production. Hence, the system security and the financial benefits for utilities are provided. To do so, in this paper, a method for optimal operation of power system in the presence of demand response program and wind-thermal power plants is presented. The method includes two-stages: First, the costs related to electricity market and second, the costs of the actual operation of the power system. For optimal operation, Particle swarm optimization algorithm (PSO) is used. The procedure is applied on6-bus sample power system.

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