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Dispatch planning using newsvendor dual problems and occupation times: Application to hydropower

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  • Densing, M.

Abstract

We consider price-driven dispatch planning under price uncertainty: A storable commodity is optimally sold and purchased over time. First, we consider models where the storage level is constrained in expectation. The dual of the corresponding optimization problem is related to the newsvendor problem. Exact solutions of bang-bang type are given. The second methodology is for high-frequency dispatch decisions in multistage stochastic programming models: To overcome the curse of dimensionality, prices are modeled by occupation times at price levels. In a case study, we consider a pumped-storage hydropower plant: Numerical solutions are given, which have similar patterns as for the first, exactly solvable problems.

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  • Densing, M., 2013. "Dispatch planning using newsvendor dual problems and occupation times: Application to hydropower," European Journal of Operational Research, Elsevier, vol. 228(2), pages 321-330.
    • Handle: RePEc:eee:ejores:v:228:y:2013:i:2:p:321-330
    DOI: 10.1016/j.ejor.2013.01.033
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    8. Schulte Beerbühl, S. & Fröhling, M. & Schultmann, F., 2015. "Combined scheduling and capacity planning of electricity-based ammonia production to integrate renewable energies," European Journal of Operational Research, Elsevier, vol. 241(3), pages 851-862.
    9. Weitzel, Timm & Glock, Christoph H., 2018. "Energy management for stationary electric energy storage systems: A systematic literature review," European Journal of Operational Research, Elsevier, vol. 264(2), pages 582-606.

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