engleski

Calculating Marginal Value of Water in Croatian Power System Using the SDDP Model

SDDP (Stochastic Dual Dynamic Programming) is a solution algorithm for optimization of a transmission-constrained hydro-thermal power system. Its objective is to produce dispatch schedule for hydro and thermal power plants by minimizing variable operation costs. Marginal value of water shows how system operation cost changes if additional unit of water is available for hydro generation, while opportunity cost of hydro indicates the economic value of an individual hydro power plant in a power system in a specific moment. The role of hydro energy in electricity market is also essential in aspects of balancing energy and providing ancillary services.

stochastic dual dynamic programming; marginal value of water; electricity market

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