The reader may feel that assuming one hydro plant with one reservoir is limiting the realism of the model since there are over 700 hydropower plants in Norway, and a majority of them have reservoirs, 830 in all. We will therefore study the implications of several producers for the optimal allocation of water. We maintain the same assumptions as in Chapter 3 and regard only the upper constraint on the reservoirs in this section, but introduce more restrictions subsequently. Each plant is assigned one reservoir. A transmission system is not specified, and the plants operate independently, i.e., there are no “hydraulic couplings” as there will be between plants along the same river system. We will return to the issue in Chapter 7 and the latter issue in a section below. An important consequence of disregarding power, production or transmission constraints for any plant is that a plant can empty its reservoir during a single period. This can be defined as perfect manoeuvrability of the reservoirs. But we do not assume that inflows can be channelled to any reservoir. The inflows are reservoir or plant specific. The plants have in general different fabrication coefficients in their production functions (1.2) in Chapter 1, and the water-accumulation equation of the type (1.4) for each plant is deflated by the plant-specific fabrication coefficient, assuming no waste of water in production. We express formally all variables in kWh, although we will talk about water.
KeywordsShadow Price Multiple Producer Optimal Plan Hydropower Plant Shadow Prex
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