“…Li et al [12] represent hydropower as a piecewise quadratic function of the discharge, while Guan et al [13] adopt a single quadratic function. Nilsson and Sjelvgren [14] represent this model in terms of most efficient points, while Conejo et al [15] model it by means of piecewise linear functions. Diniz [16] and Borghetti [17] present models that take into account the head effects on power production and use a linearization technique for represent the hydropower function in the problem.…”
“…Li et al [12] represent hydropower as a piecewise quadratic function of the discharge, while Guan et al [13] adopt a single quadratic function. Nilsson and Sjelvgren [14] represent this model in terms of most efficient points, while Conejo et al [15] model it by means of piecewise linear functions. Diniz [16] and Borghetti [17] present models that take into account the head effects on power production and use a linearization technique for represent the hydropower function in the problem.…”
“…On the other hand, some other Refs. [6,7,9,10] still find the optimum solution by exploiting the problem structure, thus yielding shorter solution times which is particularly important when considering extremely large systems. In this case one considers the Lagrangian function; by using the Benders cut decomposition technique the original problem is transformed into two separate but linked programs: the master and the subproblem, [6].…”
“…The river routing coefficients thus generalize upon a single water flow time, as it is found in numerous applications (see, for example, [6,7,35]). …”
This paper presents a deterministic and a stochastic mathematical model for maximizing the profits obtained by selling electricity produced through a cascade of dams and reservoirs in a spot market. The first model is based on deterministic electricity prices while the other integrates stochasticity through the management of a tree of potential price scenarios. Numerical results based on historical data demonstrate the superiority of the stochastic model over the deterministic one. It is also shown that price volatility impacts the profits obtained by the stochastic model.
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