Demand response (DR) has become an impressive option in the deregulated power system due to its features of availability, quickness and applicability. In this paper, a novel economic dispatch model integrated with wind power is proposed, where incentive-based DR and reliability measures are taken into account. Compared with the conventional models, the proposed model considers customers' power consumption response to the incentive price. The load profile is optimized with DR to depress the influence on the dispatch caused by the anti-peak-shaving and intermittence of wind generation. Furthermore, a probabilistic formulation is established to calculate the expected energy not supplied (EENS). This approach combines the probability distribution of the forecast errors of load and wind power, as well as the outage replacement rates of units into consideration. The cost of EENS is added into the objective to achieve an optimal equilibrium point between economy and reliability of power system operation. The proposed model is solved by mixed integer linear programming (MILP). The applicability and effectiveness of this model is illustrated by numerical simulations tested on the IEEE 24-bus Reliability Test System. Sustainability 2017, 9, 758 2 of 20 with a certain proportion of the forecast load or the maximum capacity of the operating units. This deterministic means has left out multiple uncertainties, such as the wind forecast error, the load forecast error, and the forced outage rate of units [12,13]. During recent years, the stochastic assessment of the spinning reserve has been applied in many articles [14][15][16]. With this approach, the spinning reserve is optimized to satisfy the expected energy not supplied (EENS). In [17], a triangular approximate distribution model is used to quantify EENS due to the stochastic feature of wind. Then, a security-constrained unit commitment algorithm is proposed to schedule conventional units and wind generation considering probabilistic forecast models of wind power. Another day-head scheduling model involving reliability criteria is described in [18]. EENS is calculated with the historical outage replacement rates of generators or lines. MILP is utilized to deal with the proposed model. In [19], the forecast errors of both wind power and load are supposed to follow normal distributions. These errors are discretized into several intervals for a new formulation of reliability measures. In [20,21], a two-stage stochastic problem is formulated to address various uncertainties in the system, such as wind power, solar generation, loads and even electric vehicles. The sample average approximation, which is a Monte Carlo simulation technique, is utilized to deal with uncertainties for scenario generation purposes. These works have integrated the system with distribution-free uncertainties, but given a rise to the computational burden.As an effective way for peak load shedding and shaving, DR has been widely investigated in the electricity market. Consuming wind power with DR will re...