ABSTRACT
This chapter considers a hydrothermal electricity producer owning thermal and hydropower generating units as well as pumped storage plants and participating in the day-ahead energy and reserves market. The residual demand curve is formed as a stepwise monotonically nonincreasing function of the Producer’s quota. The hourly residual demand curves that the Producer faces can be estimated based on forecasts of the system load demand/reserve requirements and the competitors’ energy/reserve offers for every hour of the scheduling horizon. The mathematical formulation of the price-taker Producer self-scheduling problem is a special case of the price-maker Producer problem. The accurate modeling of the unit start-up sequence requires special attention. Each stochastic programming problem is defined in a number of stages. Each stage denotes a point in time where related decisions are made or uncertainty is revealed. The stochastic optimization problem of the power company is also subject to the unit operating constraints considered for the respective deterministic problems.
