Due to increase in renewable generation presence in power systems worldwide, current practices in day-ahead or hour-ahead operation planning require revision. Both wind and solar energy governed power sources require forecasting similar to load forecasts performed in traditional power systems. When such stochastic generation reaches significant amounts, traditional day-ahead or hour-ahead operation planning is not suitable, and a novel approach is required in order to ensure reliable and economically efficient generation scheduling. This paper presents an optimization procedure for energy and reserve co- optimization accounting for uncertainty in both wind and solar power forecasting. Problem formulation is based on two-stage stochastic programming where energy and capacity procurement is performed in the first stage, while balancing power or curtailments and load losses are performed in the second stage.