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This paper has analyzed the features about the small hydropower stations in ShaoGuan. Combines with the actual situation, the optimum mathematic model is built up. Through the research and improvement on traditional genetic algorithm, the calculating method of the model based on improved genetic algorithm is presented. At last, by calculating the example with two small hydropower stations, it proves this method which has great significance to enhance the efficiency and economy in Shaoguan power grid is practical and scientific. The model and the algorithm have been used in the ldquooptimal decision-making system in Shaoguan power gridrdquo which has been put into the real operation.