Optimal Scheduling of Hydropower Plant with Uncertainty Energy Price Risks

This paper presents a methodology for the development of generation strategies of hydropower plant in a competitive electricity market. Initially, the problem is constructing as a two level optimization problem by time scales, where at upper level use the Markov decision in the sequential strategy to establish the sequential model of hydropower generation strategy. At the lower level, an optimal generation strategy model under the risks of water inflow and day-ahead electricity prices uncertainties, which are dividend into Omega scenarios, is established to modify the upper level´s generation strategies. Duel stochastic dynamic programming are employed in the power generation process of each hydropower plants so that the maximization expected return can be reached, each level´s generation strategies and contract quantities are obtained. The real case studies shown the proposed models are rational and feasible.