On the Economics of Ramping Rate Restrictions at Hydro Power Plants: Balancing Profitability and Environmental Costs

Shilei Niu and Margaret Insley

No 1017, Working Papers from University of Waterloo, Department of Economics

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.

Pages: 46 pages
Date: 2010-12, Revised 2010-12
New Economics Papers: this item is included in nep-ene and nep-env
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Citations: View citations in EconPapers (1)

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Journal Article: On the economics of ramping rate restrictions at hydro power plants: Balancing profitability and environmental costs (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:wat:wpaper:1017

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