On the Economics of Ramping Rate Restrictions at Hydro Power Plants: Balancing Profitability and Environmental Costs
This paper examines the impact of ramping rate restrictions imposed on hydro operations to protect aquatic ecosystems. A dynamic optimization model of the profit maximizing decisions of a hydro operator is solved for various restrictions on water flow, using data for a representative hydro operation in Ontario. Profits are negatively affected, but for a range of restrictions the impact is not large. Ramping restrictions cause a redistribution of hydro production over a given day, which can result in an increase in total hydro power produced. This affects the need for power from other sources with consequent environmental impacts.
|Date of creation:||Dec 2010|
|Date of revision:||Dec 2010|
|Contact details of provider:|| Postal: |
Phone: (519) 888-4567 ext 33695
Fax: (519) 725-0530
Web page: http://economics.uwaterloo.ca/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Donald N Dewees, 2006.
"Pollution and the Price of Power,"
tecipa-246, University of Toronto, Department of Economics.
- Brian K. Edwards & Silvio J. Flaim & Richard E. Howitt, 1999. "Optimal Provision of Hydroelectric Power under Environmental and Regulatory Constraints," Land Economics, University of Wisconsin Press, vol. 75(2), pages 267-283.
- Daniel D. Huppert, 1999. "Snake River Salmon Recovery: Quantifying The Costs," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 476-491, October.
- Philpott, A. B. & Craddock, M. & Waterer, H., 2000. "Hydro-electric unit commitment subject to uncertain demand," European Journal of Operational Research, Elsevier, vol. 125(2), pages 410-424, September.
- David A. Harpman, 1999. "Assessing the Short-Run Economic Cost of Environmental Constraints on Hydropower Operations at Glen Canyon Dam," Land Economics, University of Wisconsin Press, vol. 75(3), pages 390-401.
- Matthew J. Kotchen & Michael R. Moore & Frank Lupi & Edward S. Rutherford, 2006. "Environmental Constraints on Hydropower: An Ex Post Benefit-Cost Analysis of Dam Relicensing in Michigan," Land Economics, University of Wisconsin Press, vol. 82(3), pages 384-403.
When requesting a correction, please mention this item's handle: RePEc:wat:wpaper:1017. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pat Gruber)
If references are entirely missing, you can add them using this form.