Hydro-reservoir management and unit-commitment in energy optimization

In partnership with CCEE, CEPEL and RADIX as industrial partners, in 2021 the study group focused on the dynamics of hourly prices when industrial consumers are demand responsive, as a follow-up of the industrial problem tackled in 2018 and 2019, on ``Day-ahead pricing mechanisms for hydro-thermal power systems''. Demand response is currently being tested by the Brazilian independent system operator and by the trading chamber, ONS. The program considers reductions of consumption of some clients as an alternative to dispatching thermal power plants out of the merit order. The day-ahead problem of finding optimal dispatch and prices for the Brazilian system is modelled as a mixed-integer linear programming problem, with non-convexities related to fixed costs and minimal generation requirements for some thermal power plants. The work focuses on the point of view of an individual hydro-power generator, to determine business opportunities related to adhering to a demand response program.