Energy price-based control strategy of a small-scale head-dependent hydroelectric power plant

Abstract

In deregulated electricity markets, the market price of electricity can be used to control power generation in order to obtain maximum revenue. This makes the building of smaller and smaller hydroelectric power stations economically feasible. High price of energy indicates that power demand is high relative to production capacity. Therefore, price-based optimization will enable the production of electricity when it is most needed. In this article, the feasibility of market price based control strategy for a small-scale hydroelectric power station is evaluated. An actual Finnish small-scale hydroelectric power plant is used as the basis for the modeling.