IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i12p2239-d239078.html
   My bibliography  Save this article

Long-Term Generation Scheduling for Cascade Hydropower Plants Considering Price Correlation between Multiple Markets

Author

Listed:
  • Bin Luo

    (Tsinghua Sichuan Energy Internet Research Institute, Chengdu 610200, China)

  • Shumin Miao

    (State Grid Sichuan Electric Power Research Institute, Chengdu 610072, China)

  • Chuntian Cheng

    (Institute of Hydropower System and Hydroinformatics, Dalian University of Technology, Dalian 116024, China)

  • Yi Lei

    (Tsinghua Sichuan Energy Internet Research Institute, Chengdu 610200, China)

  • Gang Chen

    (State Grid Sichuan Electric Power Research Institute, Chengdu 610072, China)

  • Lang Gao

    (Tsinghua Sichuan Energy Internet Research Institute, Chengdu 610200, China)

Abstract

The large-scale cascade hydropower plants in southwestern China now challenge a multi-market environment in the new round of electricity market reform. They not only have to supply the load for the local provincial market, but also need to deliver electricity to the central and eastern load centers in external markets, which makes the generation scheduling much more complicated, with a correlated uncertain market environment. Considering the uncertainty of prices and correlation between multiple markets, this paper has proposed a novel optimization model of long-term generation scheduling for cascade hydropower plants in multiple markets to seek for the maximization of overall benefits. The Copula function is introduced to describe the correlation of stochastic prices between multiple markets. The price scenarios that obey the Copula fitting function are then generated and further reduced by using a scenario reduction strategy that combines hierarchical clustering and inconsistent values. The proposed model is applied to perform the long-term generation scheduling for the Wu River cascade hydropower plants and achieves an increase of 106.93 million yuan of annual income compared with the conventional scheduling model, without considering price scenarios, showing better performance in effectiveness and robustness in multiple markets.

Suggested Citation

  • Bin Luo & Shumin Miao & Chuntian Cheng & Yi Lei & Gang Chen & Lang Gao, 2019. "Long-Term Generation Scheduling for Cascade Hydropower Plants Considering Price Correlation between Multiple Markets," Energies, MDPI, vol. 12(12), pages 1-17, June.
  • Handle: RePEc:gam:jeners:v:12:y:2019:i:12:p:2239-:d:239078
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/12/2239/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/12/12/2239/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chen, Jun & Garcia, Humberto E., 2016. "Economic optimization of operations for hybrid energy systems under variable markets," Applied Energy, Elsevier, vol. 177(C), pages 11-24.
    2. Arsalan Najafi & Mousa Marzband & Behnam Mohamadi-Ivatloo & Javier Contreras & Mahdi Pourakbari-Kasmaei & Matti Lehtonen & Radu Godina, 2019. "Uncertainty-Based Models for Optimal Management of Energy Hubs Considering Demand Response," Energies, MDPI, vol. 12(8), pages 1-20, April.
    3. Perica Ilak & Slavko Krajcar & Ivan Rajšl & Marko Delimar, 2014. "Pricing Energy and Ancillary Services in a Day-Ahead Market for a Price-Taker Hydro Generating Company Using a Risk-Constrained Approach," Energies, MDPI, vol. 7(4), pages 1-26, April.
    4. George Gross & David Finlay, 2000. "Generation Supply Bidding in Perfectly Competitive Electricity Markets," Computational and Mathematical Organization Theory, Springer, vol. 6(1), pages 83-98, May.
    5. of England, Bank, 2016. "Markets and operations," Bank of England Quarterly Bulletin, Bank of England, vol. 56(4), pages 212-221.
    6. Zeng, Ming & Yang, Yongqi & Wang, Lihua & Sun, Jinghui, 2016. "The power industry reform in China 2015: Policies, evaluations and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 94-110.
    7. Zhao, Xiaoli & Lyon, Thomas P. & Song, Cui, 2012. "Lurching towards markets for power: China’s electricity policy 1985–2007," Applied Energy, Elsevier, vol. 94(C), pages 148-155.
    8. Chuntian Cheng & Bin Luo & Shumin Miao & Xinyu Wu, 2016. "Mid-Term Electricity Market Clearing Price Forecasting with Sparse Data: A Case in Newly-Reformed Yunnan Electricity Market," Energies, MDPI, vol. 9(10), pages 1-22, October.
    9. Garcia-Gonzalez, Javier & Parrilla, Ernesto & Mateo, Alicia, 2007. "Risk-averse profit-based optimal scheduling of a hydro-chain in the day-ahead electricity market," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1354-1369, September.
    10. Wang, Fei & Xu, Hanchen & Xu, Ti & Li, Kangping & Shafie-khah, Miadreza & Catalão, João. P.S., 2017. "The values of market-based demand response on improving power system reliability under extreme circumstances," Applied Energy, Elsevier, vol. 193(C), pages 220-231.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xiang Wang & Le Guo & Jianjian Shen & Meiyan Kong & Xu Han, 2023. "Issues and Strategies for the Dispatching and Trading of the Three Gorges Large Hydropower System," Energies, MDPI, vol. 16(18), pages 1-16, September.
    2. F. Marta L. Di Lascio & Andrea Menapace & Roberta Pappadà, 2024. "A spatially‐weighted AMH copula‐based dissimilarity measure for clustering variables: An application to urban thermal efficiency," Environmetrics, John Wiley & Sons, Ltd., vol. 35(1), February.
    3. Yuan, Wenlin & Zhang, Shijie & Su, Chengguo & Wu, Yang & Yan, Denghua & Wu, Zening, 2022. "Optimal scheduling of cascade hydropower plants in a portfolio electricity market considering the dynamic water delay," Energy, Elsevier, vol. 252(C).
    4. Haojianxiong Yu & Jianjian Shen & Chuntian Cheng & Jia Lu & Huaxiang Cai, 2023. "Multi-Objective Optimal Long-Term Operation of Cascade Hydropower for Multi-Market Portfolio and Energy Stored at End of Year," Energies, MDPI, vol. 16(2), pages 1-21, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reddy, S. Surender, 2017. "Optimal scheduling of thermal-wind-solar power system with storage," Renewable Energy, Elsevier, vol. 101(C), pages 1357-1368.
    2. Sen Guo & Wenyue Zhang & Xiao Gao, 2020. "Business Risk Evaluation of Electricity Retail Company in China Using a Hybrid MCDM Method," Sustainability, MDPI, vol. 12(5), pages 1-21, March.
    3. Beck, T. & Kondziella, H. & Huard, G. & Bruckner, T., 2017. "Optimal operation, configuration and sizing of generation and storage technologies for residential heat pump systems in the spotlight of self-consumption of photovoltaic electricity," Applied Energy, Elsevier, vol. 188(C), pages 604-619.
    4. Heetae Kim & Jinwoo Bae & Seoin Baek & Donggyun Nam & Hyunsung Cho & Hyun Joon Chang, 2017. "Comparative Analysis between the Government Micro-Grid Plan and Computer Simulation Results Based on Real Data: The Practical Case for a South Korean Island," Sustainability, MDPI, vol. 9(2), pages 1-18, January.
    5. Lasemi, Mohammad Ali & Arabkoohsar, Ahmad, 2020. "Optimal operating strategy of high-temperature heat and power storage system coupled with a wind farm in energy market," Energy, Elsevier, vol. 210(C).
    6. Escalante Soberanis, M.A. & Mithrush, T. & Bassam, A. & Mérida, W., 2018. "A sensitivity analysis to determine technical and economic feasibility of energy storage systems implementation: A flow battery case study," Renewable Energy, Elsevier, vol. 115(C), pages 547-557.
    7. Alipour, Manijeh & Mohammadi-Ivatloo, Behnam & Moradi-Dalvand, Mohammad & Zare, Kazem, 2017. "Stochastic scheduling of aggregators of plug-in electric vehicles for participation in energy and ancillary service markets," Energy, Elsevier, vol. 118(C), pages 1168-1179.
    8. Every, Jeremy & Li, Li & Dorrell, David G., 2017. "Leveraging smart meter data for economic optimization of residential photovoltaics under existing tariff structures and incentive schemes," Applied Energy, Elsevier, vol. 201(C), pages 158-173.
    9. Popov, Dimityr & Borissova, Ana, 2017. "Innovative configuration of a hybrid nuclear-solar tower power plant," Energy, Elsevier, vol. 125(C), pages 736-746.
    10. Epiney, A. & Rabiti, C. & Talbot, P. & Alfonsi, A., 2020. "Economic analysis of a nuclear hybrid energy system in a stochastic environment including wind turbines in an electricity grid," Applied Energy, Elsevier, vol. 260(C).
    11. Scheubel, Christopher & Zipperle, Thomas & Tzscheutschler, Peter, 2017. "Modeling of industrial-scale hybrid renewable energy systems (HRES) – The profitability of decentralized supply for industry," Renewable Energy, Elsevier, vol. 108(C), pages 52-63.
    12. Sreepradha, Chandrasekharan & Panda, Rames Chandra & Bhuvaneswari, Natrajan Swaminathan, 2017. "Mathematical model for integrated coal fired thermal boiler using physical laws," Energy, Elsevier, vol. 118(C), pages 985-998.
    13. Zhen, J.L. & Huang, G.H. & Li, W. & Liu, Z.P. & Wu, C.B., 2017. "An inexact optimization model for regional electric system steady operation management considering integrated renewable resources," Energy, Elsevier, vol. 135(C), pages 195-209.
    14. Peng Wang & Meng Li, 2019. "Scenario Analysis in the Electric Power Industry under the Implementation of the Electricity Market Reform and a Carbon Policy in China," Energies, MDPI, vol. 12(11), pages 1-26, June.
    15. Chua, Kein Huat & Lim, Yun Seng & Morris, Stella, 2017. "A novel fuzzy control algorithm for reducing the peak demands using energy storage system," Energy, Elsevier, vol. 122(C), pages 265-273.
    16. Fan, Shifa & Gao, Yuanwen, 2019. "Numerical analysis on the segmented annular thermoelectric generator for waste heat recovery," Energy, Elsevier, vol. 183(C), pages 35-47.
    17. Wang, Luhao & Li, Qiqiang & Ding, Ran & Sun, Mingshun & Wang, Guirong, 2017. "Integrated scheduling of energy supply and demand in microgrids under uncertainty: A robust multi-objective optimization approach," Energy, Elsevier, vol. 130(C), pages 1-14.
    18. Chang, Carolyn W. & Li, Xiaodan & Lin, Edward M.H. & Yu, Min-Teh, 2018. "Systemic risk, interconnectedness, and non-core activities in Taiwan insurance industry," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 273-284.
    19. Matteo Foglia & Eliana Angelini, 2019. "An explorative analysis of Italy banking financial stability," Economics Bulletin, AccessEcon, vol. 39(2), pages 1294-1308.
    20. Abbaspour, M. & Satkin, M. & Mohammadi-Ivatloo, B. & Hoseinzadeh Lotfi, F. & Noorollahi, Y., 2013. "Optimal operation scheduling of wind power integrated with compressed air energy storage (CAES)," Renewable Energy, Elsevier, vol. 51(C), pages 53-59.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:12:y:2019:i:12:p:2239-:d:239078. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.