A review on risk-constrained hydropower scheduling in deregulated power market

Liu Hongling, Jiang Chuanwen and Zhang Yan

Renewable and Sustainable Energy Reviews, 2008, vol. 12, issue 5, 1465-1475

Abstract: In deregulated power market, hydro producer has in principle no other objective than to produce electricity and sell with maximum profit with lower market risk. Attention must focus on profit uncertainty caused by uncertainty in spot prices and reservoir inflow. The purpose of this review is to assess the state-of-the-art in hydropower operations considering profit risk under uncertainty and consider future directions for additional research and application. Physical and financial tools to hedge risk in bilateral market and risk-assessment methods are all discussed in detail. Furthermore, production resources can also be used to manage risk to a certain extent. This concept, when be integrated with variety of risk-management methods under stochastic optimal framework, has operational significance for hydro producer participating in electricity market.

Keywords: Hydro; scheduling; Inflow; risk; Price; risk; Risk; management; Stochastic; optimization (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (14)

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