Optimal Production Planning for Small-Scale Hydropower
Abstract: As more and more renewable energy sources like wind and solar power are added to the electricgrid, reliable sources of power like hydropower become more important. Hydropower isabundant in Scandinavia, and helps to maintain a stable and reliable grid with added irregularitiesfrom wind and solar power, as well as more fluctuations in demand. Aside from the reliabilityaspect of hydropower, power producers want to maximize their profit from sold electricity. InSweden, power is bid to the spot market at Nord Pool every day, and a final spot price is decidedwithin the electricity market. There is a different electricity price each hour of the day, so it ismore profitable to generate power during some hours than others.There are many other factors that can change when it is most profitable for a hydropower plant tooperate, like how much local inflow of water there is. Hydropower production is an ideal case forusing optimisation models, and they are widely used throughout industry already. Though theoptimisation calculations are done by a computer, there is a lot of manual work from the spottraders that goes into specifying the inputs to the model, such as local inflow, price forecasts, andperhaps most importantly, market strategy. Due to the large amount of work that needs to be donefor each hydropower plant, many of the smaller power plants are not optimised at all, but are leftto run on an automatic control that typically tries to maintain a constant water level. In Fortum,this is called, VNR, or vattennivåreglering (water level regulation).The purpose of this thesis is to develop an optimisation algorithm for a small hydropower plant,using Fortum owned and operated Båthusströmmen as a test case. An optimisation model is builtin Fortum’s current modelling system and is tested for 2016. In addition, a mathematical model isalso built and tested using GAMS. It is found that by optimising the plant instead of running it onVNR, an increase of about 15-16% in profit could be seen for the year 2016. This is a significantimprovement, and is a strong motivator to being optimising the small hydropower plants.Since the main reason many small hydropower plants are not optimised is because it takes toomuch of employees time, a second phase of this thesis was conducted in conjunction with twoother students, Jenny Möller and Johan Wiklund. The focus of this portion was to develop acentralized controller to automatically optimise the production schedule and communicate withthe central database. This would completely remove the workload from the spot traders, as wellas increase the overall profit of the plant. This thesis describes the results from both the Fortummodel and the GAMS model, as well as the mathematical formulation of the GAMS model. Thebasic structure of the automatic controller is also presented, and more can be read in the thesis byMöller and Wiklund (Möller & Wiklund, 2018).
AT THIS PAGE YOU CAN DOWNLOAD THE WHOLE ESSAY. (follow the link to the next page)