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Hydropower Reservoir Optimization with Solar Generation-Changed Energy Prices in California

Author

Listed:
  • Mustafa Sahin Dogan

    (Aksaray University)

  • Josue Medellin-Azuara

    (University of California)

  • Jay R. Lund

    (University of California)

Abstract

Growing solar photovoltaic supply has significantly reshaped energy prices, lowering them during solar generating hours. Large-scale hydropower reservoir operations need to adapt to changes in energy prices to maximize hydropower revenue. This paper evaluates effects of solar generation-changed energy prices on hydropower generation for five multipurpose reservoirs in California using a hydroeconomic optimization model. In California, major solar generation began in 2013, so years 2010–2012 are a pre-solar period, and years 2013–2018 are post-solar. Reservoir operations, hydropower generation and revenue between these periods are compared. Operations in the wet season (January to June), and the dry season (July to December) are evaluated. Results show that releases are more profitable when hydropower is generated twice a day during on-peak hours in the morning and evening in the wet season. When water is scarce, energy is generated only during the higher-price evening peak. Hydropower generation is mostly curtailed between 10am and 6pm due to large solar supplies, and increase during morning and evening peaks when solar generation is unavailable. However, by optimizing hydropower scheduling hours, the new energy price pattern can be more profitable. With increased energy price variability and adaptation, overall daily revenue can increase by about 14% in the wet season and 30% in the dry season.

Suggested Citation

  • Mustafa Sahin Dogan & Josue Medellin-Azuara & Jay R. Lund, 2024. "Hydropower Reservoir Optimization with Solar Generation-Changed Energy Prices in California," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 38(6), pages 2135-2153, April.
    • Handle: RePEc:spr:waterr:v:38:y:2024:i:6:d:10.1007_s11269-024-03747-6
    DOI: 10.1007/s11269-024-03747-6
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