On the economics of ramping rate restrictions at hydro power plants: Balancing profitability and environmental costs

Shilei Niu and Margaret Insley

Energy Economics, 2013, vol. 39, issue C, 39-52

Abstract: This paper examines the impact of ramping rate restrictions imposed on hydro operations to protect aquatic ecosystems. A dynamic optimization model of the profit maximizing decisions of a hydro operator is solved for various restrictions on water flow, using data for a representative hydro operation in Ontario. Profits are negatively affected, but for a range of restrictions the impact is not large. Ramping restrictions cause a redistribution of hydro production over a given day, which can result in an increase in total hydro power produced. This affects the need for power from other sources with consequent environmental impacts.

Keywords: Electricity; Ramping rate; Hydroelectrical power; Hydro-peaking; Aquatic ecosystems; Thermal generation (search for similar items in EconPapers)
JEL-codes: Q40 Q59 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Working Paper: On the Economics of Ramping Rate Restrictions at Hydro Power Plants: Balancing Profitability and Environmental Costs (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:39:y:2013:i:c:p:39-52

DOI: 10.1016/j.eneco.2013.04.002

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