A novel stochastic reserve cost allocation approach of electricity market agents in the restructured power systems

•A novel method is proposed to allocate expected reserve cost between market agents.•Customers are classified based on their strategies and desired reliability levels.•New economic metrics are defined to apportion reserve costs between market agents.•Reserve cost is allocated through wind farms, GenCos, TransCos, and customers.•Three approaches are proposed to apportion reserve costs between wind farm owners.