Price-Shaped Optimal Water Reflow in Prosumer Energy Cascade Hydro Plants

In the face of the recent surge in energy prices, intensified use of free renewable sources of energy (RSE) gains much importance. Unfortunately, the operation of RSE highly depends on weather conditions, which perturb the balance between the industrial and home energy dissipation patterns. This disparity induces price fluctuations or even destabilizes the energy supply system, yet can be alleviated by the installation of energy depots. While electrochemical depots are hardly cost-effective, they may be supplemented or replaced by small hydro plants with the ponds located above the plant recognized as energy reservoirs. However, inappropriate use of the plant is likely to cause floods or droughts down the river. In this paper, following a rigorous mathematical argument, a cost-optimal controller of a cascade of hydro plants is designed and its properties are formally proved. It is shown to flatten the price pattern, by reducing the load fluctuation of the legacy supply system, as well as provide a concrete revenue for prosumers.