Reservoir-type hydropower equivalent model based on a future cost piecewise approximation

The long-term (LT) scheduling of reservoir-type hydropower plants is a multistage stochastic dynamic problem that has been traditionally solved using the stochastic dual dynamic programming (SDDP) approach. This LT schedule of releases should be met through short-term (ST) scheduling decisions obtained from a hydro-thermal scheduling that considers uncertainties. Both time scales can be linked if the ST problem considers as input the future cost function (FCF) obtained from LT studies. Known the piecewise-linear FCF, the hydro-scheduling can be solved as a one-stage problem. Under certain considerations a single segment of the FCF can be used to solve the schedule. From this formulation an equivalent model for the hydropower plant can be derived and used in ST studies. This model behaves accordingly to LT conditions to be met, and provides a marginal cost for dispatching the plant. A generation company (GENCO) owning a mix of hydro, wind, and thermal power will be the subject of study where the model will be implemented. The GENCO faces the problem of scheduling the hydraulic resource under uncertainties from e.g. wind and load while determining the market bids that maximize its profit under uncertainties from market prices. A two-stage stochastic unit commitment (SUC) for the ST scheduling implementing the equivalent hydro model will be solved.