The Development and Calibration of a Mid-Term Planning Model of a Co-Owned Hydropower System

Abstract

This thesis develops a mid-term linear programming hydropower optimization tool for a certain river system in Finland. The system is unique as it is consists of several hydro reservoirs and hydropower plants that are owned unequally by several different co-owners. The model’s results are used to give instructions to the actual operator on how to operate the assets in the river. All of the co-owners produce their own plans and the operator collects and combines them to create the final production plan. The optimization tool creates results that optimize the whole system and not just one co-owners wishes. After extensive tests, it can be concluded that the optimization tool plans the hydro system in a more optimal way that creates more value for all the co-owners in the hydro system. The model suggests operating the river more dynamically and using the total available flexibility in the hydro reservoirs and not operating it too conservatively as before. As a result, the system’s improvement potential can be utilized and the owners of the system can benefit financially from it.