Profit maximization of a hydro producer in a day-ahead energy market and ancillary service markets

Water is scarce resource with uncertain availability. Hence finding an optimal production schedule for hydro producer is usually a complex task and it is necessary to carefully balance the timing of water use. This paper addresses the self-scheduling problem for a price-taker hydro producer. The goal is maximizing the profit of a hydro producer through participating in the day-ahead energy and ancillary service markets. The spinning reserve and regulation market are considered as ancillary service markets. The self-scheduling problem of hydro producer is formulated and solved as a mixed integer linear programming problem. Model is deterministic and three-dimensional relationship between the power produced, the water discharged, and the head of associated reservoir is accounted. Real hydropower system Vinodol is considered.