Optimal scheduling of a hydro basin in a pool-based electricity market with consideration of transmission constraints

• Transmission constraints and zonal prices on hydro dispatching problem is studied.
• Optimal bids of hydro plants in a basin are computed in presence of zonal prices.
• The results show the efficiency of the algorithm.
• The results show the positioning modifications of hydro plants in the market.

The effect of flexible hydropower management on prices is a topic widely studied in research and economic analysis. However, the influence of transmission constraints and zonal prices on optimal hydro dispatching has not been highly considered in the literature. In the present study, an iterative algorithm for calculating the optimal bids of hydro plants in a basin is proposed, considering the fundamental influence of these plants in regions when transmission lines are congested and can affect zonal prices. The results show the efficiency of the algorithm and modifications in positioning of hydro plants in the market.