On the economics of ramping rate restrictions at hydro power plants: Balancing profitability and environmental costs

Shilei Niu; Margaret Insley

doi:10.1016/j.eneco.2013.04.002

On the economics of ramping rate restrictions at hydro power plants: Balancing profitability and environmental costs

Shilei Niu, Margaret Insley^*

^*Corresponding author for this work

University of Waterloo

Research output: Contribution to journal › Article › peer-review

44 Citations (Scopus)

Abstract

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.

Original language	English
Pages (from-to)	39-52
Number of pages	14
Journal	Energy Economics
Volume	39
DOIs	https://doi.org/10.1016/j.eneco.2013.04.002
Publication status	Published - Sept 2013
Externally published	Yes

Keywords

Aquatic ecosystems
Electricity
Hydro-peaking
Hydroelectrical power
Q400
Q590
Ramping rate
Thermal generation

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10.1016/j.eneco.2013.04.002

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title = "On the economics of ramping rate restrictions at hydro power plants: Balancing profitability and environmental costs",

abstract = "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.",

keywords = "Aquatic ecosystems, Electricity, Hydro-peaking, Hydroelectrical power, Q400, Q590, Ramping rate, Thermal generation",

author = "Shilei Niu and Margaret Insley",

note = "Funding Information: The authors would like to thank Ontario Power Generation for the data provided. Funding from the Social Sciences and Humanities Research Council and the Ontario Centres of Excellence is gratefully acknowledged. ",

year = "2013",

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AU - Insley, Margaret

N1 - Funding Information: The authors would like to thank Ontario Power Generation for the data provided. Funding from the Social Sciences and Humanities Research Council and the Ontario Centres of Excellence is gratefully acknowledged.

PY - 2013/9

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N2 - 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.

AB - 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.

KW - Aquatic ecosystems

KW - Electricity

KW - Hydro-peaking

KW - Hydroelectrical power

KW - Q400

KW - Q590

KW - Ramping rate

KW - Thermal generation

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DO - 10.1016/j.eneco.2013.04.002

M3 - Article

AN - SCOPUS:84877895657

SN - 0140-9883

VL - 39

SP - 39

EP - 52

JO - Energy Economics

JF - Energy Economics

ER -

On the economics of ramping rate restrictions at hydro power plants: Balancing profitability and environmental costs

Abstract

Keywords

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