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Hydropower Bidding Using Linearized Start-Ups

Author

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  • Ellen Krohn Aasgård

    (Department of Industrial Economics and Technology Management, Norwegian University of Science and Technology, 7034 Trondheim, Norway
    Current address: Alfred Getz vei 3, 7034 Trondheim, Norway.)

Abstract

Hydropower producers must submit bids to electricity market auctions where they state their willingness to produce power. These bids may be determined using a mixed-integer linear stochastic program. However, for large interconnected river systems, this program may be too complex to be solved within the time limits set by current market rules. This paper investigates whether a linear approximation to start-ups can be used to reduce the computational burden without significantly degrading the solution quality. In order to investigate the trade-off of time versus solution quality, linear approximation is compared to a formulation that uses binary variables in a case study that simulates the operation of a reservoir system over time.

Suggested Citation

  • Ellen Krohn Aasgård, 2017. "Hydropower Bidding Using Linearized Start-Ups," Energies, MDPI, vol. 10(12), pages 1-13, November.
    • Handle: RePEc:gam:jeners:v:10:y:2017:i:12:p:1975-:d:120656
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    References listed on IDEAS

    as
    1. G. Pritchard & G. Zakeri, 2003. "Market Offering Strategies for Hydroelectric Generators," Operations Research, INFORMS, vol. 51(4), pages 602-612, August.
    2. Fleten, Stein-Erik & Kristoffersen, Trine Krogh, 2007. "Stochastic programming for optimizing bidding strategies of a Nordic hydropower producer," European Journal of Operational Research, Elsevier, vol. 181(2), pages 916-928, September.
    3. Ludwig Kuntz & Felix Müsgens, 2007. "Modelling start-up costs of multiple technologies in electricity markets," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 66(1), pages 21-32, August.
    4. Boomsma, Trine Krogh & Juul, Nina & Fleten, Stein-Erik, 2014. "Bidding in sequential electricity markets: The Nordic case," European Journal of Operational Research, Elsevier, vol. 238(3), pages 797-809.
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