Baseline hydropower generation offer curves

TL;DR

This paper presents a mathematical model using a Markov decision process to price hydropower generation, capturing seasonal water inflow variations with computational efficiency and interpretability.

Contribution

It introduces a novel Markov decision process model specifically designed for hydropower pricing that accounts for seasonal inflow variations.

Findings

Model effectively captures seasonal inflow variations.

Computationally efficient and easy to interpret.

Provides a new approach for hydropower pricing.

Abstract

We outline a mathematical model for pricing hydropower generation. The model involves a Markov decision process that reflects the seasonal variation in historical time series of water inflows. The procedure is computationally efficient and easy to interpret.