Enhancing the representation of conventional hydropower flexibility in production cost models [HydroWIRES]

Hydropower is in high demand from a power grid coordination perspective because of its operational and economic characteristics. But production cost models (PCMs)—a tool traditionally used to plan and optimize power generation sources to meet demand within security constraints at the lowest cost—currently oversimplify hydropower operations. As part of the HydroWIRES Initiative, researchers from PNNL, ANL, and ORNL are teaming with the Center for Advanced Decision Support for Water and Environmental Systems to improve the representation of hydropower operations in PCMs across regional power grids. The PNNL-led team is leveraging large-scale, integrated water-modeling tools and unit commitment models to build a module that characterizes potential hydropower operations based on daily hydrologic conditions, regulatory water management compliance rules, and economic signals. This module, referred to as “dynamic classification” by PCM modelers, will support more robust PCM-based studies. The dynamic classification will be developed over the western United States as proof of concept. Results from this effort will guide future model development and research to improve generator fleet dispatch, scheduling, and planning, toward the goal of better co-optimizing water and energy systems.