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The most formidable challenge in assembling a Smart Grid is the integration of a high penetration of renewables. Demand Response, a largely promising concept, is increasingly discussed as a means to cope with the intermittent and uncertain renewables. In this paper, we propose a dynamic market mechanism that reaches the market equilibrium through continuous negotiations between key market players. In addition to incorporating renewables, this market mechanism also incorporates a quantitativedoi:10.1109/tcst.2015.2476785 fatcat:jio6tf455zarlg5bers2vox4dm