Figuerola Ferretti Garrigues, Isabel Catalina Schwartz, Eduardo Segarra Tamarit, Ignacio 2025-09-26T12:29:08Z 2025-09-26T12:29:08Z 2024-05-01 1469-7688 https:doi.org10.108014697688.2024.2332384 http://hdl.handle.net/11531/104812 Artículos en revistas Given the currently changing climate conditions it is of primary importance to optimise the management of hydropower resources. This paper proposes a framework in a dynamic setting to determine the water outflow that maximises the value of a water resource for a given reservoir. The model includes two sources of uncertainty, the water inventory determined mainly by the water inflow and the electricity prices. It is implemented under the stochastic optimal control approach and calibrated using monthly data of reservoir characteristics from ResOpsUs. The results indicate that the inventory dynamics are specially important in valuing reservoir resources. The application of optimal management policies guarantees the long-term sustainability of the reservoir. The possible effects of climate change are considered in a sensitivity analysis to changes in the price and water inventory dynamics. application/octet-stream en-GB Revista: Quantitative Finance, Periodo: 1, Volumen: online, Número: 5, Página inicial: 521, Página final: 539 Instituto de Investigación Tecnológica (IIT) Optimal operation of a hydropower plant in a stochastic environment info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion info:eu-repo/semantics/openAccess Water management; Climate change; Hydro power; Sustainable reservoir