SHOP has created added value in the utilities in terms of increased income that greatly exceeds operationalization costs for the utilities and the development costs of the SHOP model itself. "Optimal Short-term Scheduling of Wind and Hydro Resources" a prototype for stochastic short-term optimization (SHARM) was developed. This model is based on a stochastic formulation of the successive linear programming method used in SHOP.
The SHARM model is aimed at improving the daily planning of hydropower given higher uncertainty in input parameters compared to what the industry experiences in the planning today. The model takes into account uncertainty in inflow to the reservoirs and in the spot price, and is capable of providing decision support and robust planning where several strategies must be weighted against each other. This is important for utilization of the flexibility of hydropower to balance intermittent renewable energy sources.
The question addressed by the proposed project is: "Is it possible to repeat the success of SHOP with the stochastic short-term model SHARM"? We believe that the answer is yes. Economic feasibility is one part of the answer, but in parallel the project will mitigate the obstacles for getting the SHARM concept operational. The implementation will increase the efficiency in the power industry and make it more likely that the industry is positioned for exploring the added value of SHARM for operational use, in particular facing a future energy market with increased share of new renewable energy sources like wind and solar.
Published September 9, 2013
Michael Martin Belsnes