Economic Dispatch Considering Hourly Capacity Allocation with a Variable Renewable and Hydro-Based Generation Portfolio

The objective of this paper is to assess an economic dispatch considering a power system portfolio, which includes predominant amount of hydro power and increasing quantities of intermittent renewables in relation to the total electric capacity. With growing importance of intermittent wind and solar generation taking part into power systems worldwide, there is need for greater chronological resolution to estimate the flexibility of the power system to offer firm capacity. In this way, a linear optimization model operating hourly is developed to calculate the minimum power system cost, while stablishing the capacity allocation to meet the projected load throughout one-year simulation, as an estimation of how the hourly economic dispatch impacts the scheduling of generators belonging to a power system with this portfolio composition. A central focus is how to operate the available hydro capacity to back up intermittent renewables, evaluating the physical hydro operating constraints, monthly energy balance and maximum power availability. A case study was simulated based on the Brazil’s power system configuration, showing that existing hydro capacity provide hourly flexibility to back-up intermittent renewables, potentially saving 1.2 Billion R$, about 3.6% of total system cost referred to 2019. It is worthwhile to realize that the developed methodology can be employed to other power systems with similar capacity portfolio structure for the purpose of calculating its optimum allocation for a specified region and target year.