Development of a model to determine the optimal strategy in a hydro basin

Abstract

The extensive expansion of the installed capacity of renewables energies have changed the market conditions and the hydroelectric technology is going to play a very important role because the strong interaction between hydro and other technologies. Hydro technology enables the system to absorb the short-term variations introduced by renewables technologies. For that reason, it is fundamental to manage this type of facilities in an optimal way. The aim of this master’s thesis is to develop a model to compute the optimal schedule in the short-term of the hydro plants in a basin. The deterministic model tries to replicate the behavior of the Spanish electricity day-ahead market and, as a result, be an adequate tool to support the elaboration of bidding strategies. The model is developed taking into account a whole basin what is necessary for more accurate results when we analyze the different parts of the basin. In this project I present the results obtained when comparing the solution of the model with what was carried out in the reality in two plants with a common unit which can pump or turbine water. The results obtained by the model fulfil the proposed objectives. These results show the optimal management of the hydro plants depending on several factors, such initial and final level of the reservoirs, the time horizon, market prices, taxes and other characteristics.