  This paper analyzes the pessimistic effect on the inherent load shifting
potential (LSP) of buildings due to the participation in the reserve market. A
generic model-based optimization approach is deployed, which uses a validated
dynamic model along with its experienced external and internal disturbances, to
quantify the LSP in the presence of various price signals. The theoretical
maximum LSP is obtained using a base energy price without the provision of
ancillary services (AS). The deviation from the base case LSP is observed after
including the time varying energy and the reserve price from the spot market.
Factors affecting the LSP are found to be as: (1) physics of the model, (2) the
nature of price signal and (3) the competency of the reserve price with respect
to the energy price. Due to its simple formulation, low computation
requirements, and modular nature, the method proposed in this paper can easily
be deployed by retailers and system operators for the assessment of monetary
incentives as well as qualified load type for various demand response (DR)
services in liberalized markets.
