Improving the Electricity Market Participation Management of Hydropower Plants in Ukraine

Abstract

This research presents a comprehensive mathematical model aimed at improving the management efficiency of hydropower plant (HPP) participation in the electricity market of Ukraine. The model focuses on the optimal daily allocation of available hydro resources, integrating the nonlinear nature of technological electricity consumption specific to HPP operations. A profit function is formulated to represent revenue from electricity sales across different market segments, with a particular emphasis on the "day-ahead" market. The model also incorporates both linear and nonlinear functions of the costs associated with purchasing electricity needed to meet the internal operational requirements of HPP generators under various load conditions. The objective function is designed to maximize profit by balancing electricity sales with the associated costs of technological energy use, accounting for variations in generation modes. In addition, the model includes a detailed system of operational constraints tied to the hydro resource management within the "Reservoir – HPP" hydraulic engineering node, ensuring the feasibility and sustainability of energy dispatch solutions. Test calculations have been carried out using real and simulated input data to evaluate the model's practical applicability. The results demonstrate the effectiveness of the proposed approach in optimizing HPP operation within the current regulatory and market environment of Ukraine. The model offers valuable insights for enhancing both economic returns and operational reliability of HPPs, contributing to more efficient integration of renewable hydro resources in the national electricity market.