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Hydro Power Operation and Economic Performance in a Changing Market Environment

English title Hydro Power Operation and Economic Performance in a Changing Market Environment
Applicant Schumann René
Number 153760
Funding scheme NRP 70 Energy Turnaround
Research institution Institut Informatique de gestion HES-SO Valais
Institution of higher education University of Applied Sciences and Arts Western Switzerland - HES-SO
Main discipline Science of management
Start/End 01.10.2014 - 31.05.2018
Approved amount 380'166.00
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All Disciplines (3)

Discipline
Science of management
Economics
Information Technology

Keywords (4)

Optimization; Market Simulation; Hydropower; Flexible production

Lay Summary (German)

Lead
Über 50% des in der Schweiz erzeugten Stroms stammt aus Wasserkraft. Diese sind daher ein wichtiger Bestandteil für die Energieversorgung und -sicherheit. Entsprechend spielt die Wasserkraft in der Energie Strategie 2050 des Bundes eine grosse Rolle. Auch weil sie die wetterbedingte Produktionsschwankungen anderer erneuerbarer Energien (wie zum Beispiel Wind oder Sonne) ausgleichen kann, und so einen wichtigen Beitrag zur Netzstabilität leistet. Um das gesamte wirtschaftliche Potenzial der Wasserkraftwerke ausnutzen zu können, muss der Betrieb der Wasserkraftwerke daher flexibler werden, um den notwendigen Ausbau der Schweizer Wasserkraft möglichst ohne staatliche Subventionen zu finanzieren. Das Projekt ist Teil des schweizweiten Verbundprojektes „The Future of Swiss Hydropower: An Integrated Economic Assessment of Chances, Threats and Solutions“ in dem ökonomisch Potentiale der Wasserkraft ganzheitlich untersucht werden.
Lay summary

Inhalt und Ziel des Forschungsprojekts

Das Projekt beinhaltet die Entwicklung von Modellen mit denen der wirtschaftliche optimale Einsatz der Wasserkraft in einem dynamischen Marktumfeld ermittelt werden soll. Im Rahmen von zwei Fallstudien werden diese Modelle für Wasserkraftwerke im Wallis und im Tessin angepasst und auf Ihre Praxistauglichkeit hin untersucht. Im Fokus dieses Projektes steht dabei die Frage, wie eine möglichst hohe Wertschöpfung mit den bestehenden Wasserkraftwerken erreicht werden kann, dabei müssen neben ökonomischen und technischen Gesichtspunkten auch Aspekte der Ökologie sowie die Interessenslagen unterschiedlicher Akteure berücksichtig werden. 

Wissenschaftlicher und gesellschaftlicher Kontext des Forschungsprojekts
Das vorliegende Projekt leistet einen wichtigen Beitrag für das Gelingen der Schweizer Energiewende indem es Modelle zur Optimierung der Produktionsentscheidungen von Wasserkraftanlagen unter Berücksichtigung zahlreicher Rahmenbedingungen entwickelt.
 
Direct link to Lay Summary Last update: 20.10.2014

Responsible applicant and co-applicants

Employees

Publications

Publication
Hydropower operation in a changing environment
(2017), Hydropower operation in a changing environment, in 2017 14th International Conference on the European Energy Market (EEM), Dresden, GermanyIEEE, US.
Hydropower Operation in a Changing Market Environment – A Swiss Case Study
(2017), Hydropower Operation in a Changing Market Environment – A Swiss Case Study, SCCER CREST WP3 - 2017/07, Basel.
Automatic Configuration of Hybrid Mathematical Models
SchumannRené (2016), Automatic Configuration of Hybrid Mathematical Models, in Proceedings of the 18th International Configuration Workshop within CP 2016 Conference, Toulouse, France.
Configuration of Hydro Power Plant Mathematical Models
Barry Michael, Schillinger Moritz, Weigt Hannes, Schumann René (2016), Configuration of Hydro Power Plant Mathematical Models, in 4th D-A-CH Conference, EI 2015, Karlsruhe, Germany, November 12-13, 2015, Proceedings, Karlsruhe.
The Future of Swiss Hydropower - A Review on Drivers and Uncertainties
Barry Michael, Hediger Werner, Romerio Franco, Schillinger Moritz, Schumann René, Voegeli Guillaume, Weigt Hannes (2015), The Future of Swiss Hydropower - A Review on Drivers and Uncertainties, Social Science Electronic Publishing, Rochester, NY.
Solver Tuning and Model Configuration
Barry Michael, Abgottspon Hubert, Schumann René, Solver Tuning and Model Configuration, in Proceedings of the 41st German Conference on Artificial Intelligence (KI 2018), BerlinSpringer International Publishing, Heidelberg.

Collaboration

Group / person Country
Types of collaboration
FMV Switzerland (Europe)
- Industry/business/other use-inspired collaboration
Werner Hediger, HTW Chur Switzerland (Europe)
- in-depth/constructive exchanges on approaches, methods or results
- Publication
- Research Infrastructure
- Industry/business/other use-inspired collaboration
Franco Romerio, Uni Geneva Switzerland (Europe)
- in-depth/constructive exchanges on approaches, methods or results
- Publication
- Research Infrastructure
- Industry/business/other use-inspired collaboration
Alpiq Switzerland (Europe)
- Industry/business/other use-inspired collaboration
FoNEW, University Basel Switzerland (Europe)
- in-depth/constructive exchanges on approaches, methods or results
- Publication
- Research Infrastructure
- Exchange of personnel
- Industry/business/other use-inspired collaboration
Misurio Switzerland (Europe)
- Industry/business/other use-inspired collaboration

Scientific events

Active participation

Title Type of contribution Title of article or contribution Date Place Persons involved
41st IAEE International Conference, Thematic Session Hydropower Talk given at a conference Bidding into balancing markets in a hydro-dominated electricity system 11.06.2018 Groningen, Netherlands Schillinger Moritz; Weigt Hannes;
12. Schweizerischer Stromkongress Talk given at a conference The Future of Swiss Hydropower 15.01.2018 Bern, Switzerland Weigt Hannes;
14th European Energy Market Conference - EEM 2017 Talk given at a conference Hydropower Operation in a Changing Market Environment 06.06.2017 Dresden, Germany Schillinger Moritz;
10. Internationale Energiewirtschaftstagung "Klimaziele 2050: Chance für einen Paradigmenwechsel?" Talk given at a conference Hydropower Operation in a Changing Market Environment 15.02.2017 Wien, Austria Schillinger Moritz;
Configuration Workshop at the 22nd International Conference on Principles and Practice of Constraint Programming (CP 2016) Talk given at a conference Automatic Configuration of Hybrid Mathematical Models 05.09.2016 Toulouse, France Barry Michael; Schumann René;
Joint thematic session at the 39th IAEE International Conference Talk given at a conference Hydropower Operation in a Changing Environment 22.06.2016 Bergen, Norway Barry Michael; Weigt Hannes; Schillinger Moritz; Schumann René;
Doctoral Consortium at the 26th International Conference on Automated Planning and Scheduling (ICAPS 2016) Talk given at a conference Solver Parameter Tuning and Runtime Predictions of Flexible Hybrid Mathematical models. 12.06.2016 London, Great Britain and Northern Ireland Barry Michael;
4th D-A-CH Energieinformatik Conference Talk given at a conference Configuration of Hydro Power Plant Mathematical Models 12.11.2015 Karlsruhe, Germany Schumann René; Barry Michael;
29. Workshop "Planen, Scheduling und Konfigurieren, Entwerfen" (PuK 2015) Talk given at a conference Dynamic and Configurable Mathematical Modelling of a Hydropower plant Research in Progress Paper 22.09.2015 Dresden, Germany Schumann René; Barry Michael;
SCCER-SoE Annual Conference 2015 Poster The Future of Swiss Hydropower A Review on Drivers and Uncertainties 10.09.2015 Neuchâtel, Switzerland Schumann René; Barry Michael; Weigt Hannes; Schillinger Moritz;
9th Symposium of European Freshwater Sciences - SEFS 9 Talk given at a conference The Future of Swiss Hydropower: An Integrated Economic Assessment of Chances, Threats and Solutions 05.07.2015 Genf, Switzerland Weigt Hannes;
NRP 70 / NRP 71 Kick-off Event Poster The Future of Swiss Hydropower 24.04.2015 Luzern, Switzerland Schillinger Moritz; Barry Michael; Weigt Hannes; Schumann René;
Sustainable Use of Resources – from Evidence to Intervention Poster The Future of Swiss Hydropower: An integrated assessment of operation, investment and sustainability 29.01.2015 Basel, Switzerland Weigt Hannes; Schillinger Moritz;


Knowledge transfer events



Self-organised

Title Date Place
2nd Workshop: The Future of Swiss Hydropower 28.10.2016 Neuchatel, Switzerland
Workshop: The Future of Swiss Hydropower 12.03.2015 Bern, Switzerland

Communication with the public

Communication Title Media Place Year
Talks/events/exhibitions 2nd Workshop: The future of Swiss Hydropower Italian-speaking Switzerland German-speaking Switzerland Western Switzerland 2016
Talks/events/exhibitions Workshop: The Future of Swiss Hydropower German-speaking Switzerland Western Switzerland Italian-speaking Switzerland 2015

Abstract

With more than 50% of total electricity generation hydropower plays an important role in the energy production of Switzerland, and it will do so in the future. However, due to the market developments in recent years HP companies face several challenges: a) the increased share of renewables leads to price reductions and changed production profiles of conventional plants (merit order effect and back-up discussion), b) the volatile nature of renewables increases the importance of reserve/balancing and system stability aspects, and c) the European market liberalization has led to increased competition across national borders and new market and trading alternatives for energy companies. To successfully implement the Energy Strategy 2050 sufficient investments are required, that needs to be financed by the operation. Thus, production needs to become more flexible to cope with the increased volatility of the market. The aim of this project is to provide modeling tools and insights how HP operation can account for those challenges by extending the existing approaches to account for different trading alternatives and market segments like future markets, the energy spot-market, or the reserve capacity market while at the same time include the technical and socio-economic constraints on the plant operation. This will be done for single and cascading hydropower plants. Also we will provide a methodology and tooling for the economic assessment of upcoming HP techniques that can increase efficiency or flexibility of HP production.This information will help the Swiss hydropower industry, to increase their profitability and therefore support the goals of the Energy Strategy 2050, and increase their competitive situation in the European energy market.
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