Strategic Operation of Hydroelectric Power Plants in Energy Markets: A Model and a Study on the Hydro-Wind Balance

The European Union defined ambitious targets for the production of energy from renewable energy sources. Most European markets trade now high levels of variable renewable energy (VRE). Renewable generation increases the variability and uncertainty of the net-load (i.e., demand minus VRE). To a large...

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Bibliographic Details
Published in:Fluids (Basel) 2020-12, Vol.5 (4), p.209
Main Authors: Algarvio, Hugo, Lopes, Fernando, Santana, João
Format: Article
Language:English
Subjects:
agent-based simulation
Alternative energy sources
Demand
Electric power generation
Electricity
Electricity distribution
electricity markets
Energy industry
Energy prices
Flexibility
hydro-wind balance
Hydroelectric plants
Hydroelectric power
hydroelectric power plants
Marginal pricing
Market prices
MATREM system
Multiagent systems
Power plants
Pricing
Renewable energy sources
Renewable resources
Uncertainty
Variability
variable renewable energy
Wind power
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Summary:The European Union defined ambitious targets for the production of energy from renewable energy sources. Most European markets trade now high levels of variable renewable energy (VRE). Renewable generation increases the variability and uncertainty of the net-load (i.e., demand minus VRE). To a large extent, this variability and uncertainty can be compensated by hydroelectric power plants. Typically, hydro power producers (HPPs) consider the periods of time with low market prices (and normally low demand and/or high VRE production) to pump, and the periods with high market prices (and normally high demand and/or low VRE production) to produce energy. This article presents a model for hydro power plants and a study to analyse the hydro-wind balance in a real-world setting, namely a simplified version of the Portuguese power system, involving a significant penetration of hydro and wind power (more than 50%). The study is conducted with the help of the multi-agent system MATREM. The results confirm (and rebut) the typical behavior of hydroelectric power plants (to produce energy, to pump water or to stay idle).
ISSN:2311-5521
2311-5521
DOI:10.3390/fluids5040209