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Assessing hydropower operational profitability considering energy and reserve markets

Assessing hydropower operational profitability considering energy and reserve markets

Category
Journal publication
Abstract
The authors analyse the operational profitability of a hydropower system selling both energy and reserve capacity in a competitive market setting. A mathematical model based on stochastic dynamic programming is used to compute the water values for the system considering different power plant configurations. The uncertainties in inflow and both energy and reserve capacity prices are considered through a discrete Markov chain. Subsequently, the system operation is simulated based on the obtained water values to assess system performance and expected revenues from the two markets. The model is applied in a case study for a Norwegian hydropower producer, showing how the power plant operation changes and profitability increases when considering sale of reserve capacity. The authors emphasise on how the water values are influenced by the opportunity to sell reserve capacity, and assess how the representation of non-convex relationships in the water value computations as well as simulation influence the profitability. © Copyright 2017 IET - All rights reserved
Client
  • Norges forskningsråd / 228731
Language
English
Author(s)
Affiliation
  • SINTEF Energy Research / Energisystemer
  • Lyse Energi AS
  • Technical University of Madrid
Year
2017
Published in
IET Renewable Power Generation
ISSN
1752-1416
Publisher
Institution of Engineering and Technology
Volume
11
Booklet
13
Page(s)
1640 - 1647