Title :
Optimality with hydropower system
Author_Institution :
Dept. of Ind. & Oper. Eng., Michigan Univ., Ann Arbor, MI, USA
fDate :
8/1/2002 12:00:00 AM
Abstract :
This paper studies an electricity producer´s long-term optimality in the case of a multireservoir hydropower system. The model solves the optimal production process and trading strategy of electricity and weather derivatives by maximizing the utility from production and terminal water reservoir level. The optimal trading strategy hedges the rainfall and electricity price uncertainties.
Keywords :
electricity supply industry; hydroelectric power; power system economics; electricity price uncertainties; electricity producer´s long-term optimality; electricity trading strategy; hedging; multireservoir hydropower system; optimal production process; rainfall; terminal water reservoir level; weather derivatives; Costs; Dynamic programming; Hydroelectric power generation; Portfolios; Production systems; Reservoirs; Scheduling; Stochastic systems; Uncertainty; Water resources;
Journal_Title :
Power Systems, IEEE Transactions on
DOI :
10.1109/TPWRS.2002.800898
