Bi-level Dynamic Optimization of Pumped-storage Hydroplants in a Competitive Power Pool. Part I: Model and Algorithm

The pumped-storage hydroplant are designed to save costs of fuel by generating electric power when the demand is higher and by pumping water into the upper reservoir when the demand is lower. The aim of this work is to present a model for the programming of daily operation of the pumped-storage hydroplant in a competitive power pool. The model is presented as a problem of bi-level dynamic optimization; the first level is the maximization of the benefits of the pumped-storage hydroplant where the decision variables are the power in the intervals of generation and pumping, whereas the second level is de problem of the daily scheduling of the system to minimize the variable costs of the operation, subject to the operative and technological restrictions of the system. The algorithm used for the numerical simulations is based on Dynamic Programming.