Influence of deregulated electricity markets on hydropower generation and downstream flow regime

Jordan D. Kern, Gregory W. Characklis, Martin W. Doyle, Seth Adam Blumsack, Richard B. Whisnant

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

The flow regime of rivers is a complex but important measure of environmental quality and one that can be significantly impacted by conventional hydropower generation. While traditional hydropower scheduling creates a periodicity in downstream flows corresponding to seasonal and daily electricity demand patterns, deregulated electricity markets may provide financial incentives to further alter flows, as utilities respond to hourly market dynamics. This study investigates the potential for deregulated markets to impact both a hydropower utility's revenue stream and downstream flow regimes. Six operating scenarios are explored: (1-2) full-market participation (including real-time energy), with and without flow reregulation; (3) day-ahead market only; and (4-6) run-of-river operations (ROR), with and without flood control and flow reregulation. Results suggest that, relative to a day-ahead-only scenario, the scale of any differences in flow regime resulting from full-market participation is relatively small compared to the additional revenue-generating potential of such a strategy. Implementing a run-of-river policy frequently yields "more natural" flowregimes than the day-ahead only scenario; but, in some cases these improvements are modest, and in others the ROR scenarios exacerbate deviation from unregulated flows. Regardless, the effects of implementing an ROR strategy come at a substantial cost in terms of foregone hydropower revenue. DOI: 10.1061/(ASCE)WR.1943-5452 .0000183.

Original languageEnglish (US)
Pages (from-to)342-355
Number of pages14
JournalJournal of Water Resources Planning and Management
Volume138
Issue number4
DOIs
StatePublished - Jan 1 2012

Fingerprint

hydropower
electricity
Rivers
river
market
scenario
revenue
Flood control
demand pattern
participation
environmental quality
Electricity
scheduling
Scheduling
Power markets
flood control
incentive
periodicity
energy
Costs

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Geography, Planning and Development
  • Water Science and Technology
  • Management, Monitoring, Policy and Law

Cite this

Kern, Jordan D. ; Characklis, Gregory W. ; Doyle, Martin W. ; Blumsack, Seth Adam ; Whisnant, Richard B. / Influence of deregulated electricity markets on hydropower generation and downstream flow regime. In: Journal of Water Resources Planning and Management. 2012 ; Vol. 138, No. 4. pp. 342-355.
@article{59bd4c90dd5a4ac0a02a45e50d1c5d2a,
title = "Influence of deregulated electricity markets on hydropower generation and downstream flow regime",
abstract = "The flow regime of rivers is a complex but important measure of environmental quality and one that can be significantly impacted by conventional hydropower generation. While traditional hydropower scheduling creates a periodicity in downstream flows corresponding to seasonal and daily electricity demand patterns, deregulated electricity markets may provide financial incentives to further alter flows, as utilities respond to hourly market dynamics. This study investigates the potential for deregulated markets to impact both a hydropower utility's revenue stream and downstream flow regimes. Six operating scenarios are explored: (1-2) full-market participation (including real-time energy), with and without flow reregulation; (3) day-ahead market only; and (4-6) run-of-river operations (ROR), with and without flood control and flow reregulation. Results suggest that, relative to a day-ahead-only scenario, the scale of any differences in flow regime resulting from full-market participation is relatively small compared to the additional revenue-generating potential of such a strategy. Implementing a run-of-river policy frequently yields {"}more natural{"} flowregimes than the day-ahead only scenario; but, in some cases these improvements are modest, and in others the ROR scenarios exacerbate deviation from unregulated flows. Regardless, the effects of implementing an ROR strategy come at a substantial cost in terms of foregone hydropower revenue. DOI: 10.1061/(ASCE)WR.1943-5452 .0000183.",
author = "Kern, {Jordan D.} and Characklis, {Gregory W.} and Doyle, {Martin W.} and Blumsack, {Seth Adam} and Whisnant, {Richard B.}",
year = "2012",
month = "1",
day = "1",
doi = "10.1061/(ASCE)WR.1943-5452.0000183",
language = "English (US)",
volume = "138",
pages = "342--355",
journal = "Journal of Water Resources Planning and Management - ASCE",
issn = "0733-9496",
publisher = "American Society of Civil Engineers (ASCE)",
number = "4",

}

Influence of deregulated electricity markets on hydropower generation and downstream flow regime. / Kern, Jordan D.; Characklis, Gregory W.; Doyle, Martin W.; Blumsack, Seth Adam; Whisnant, Richard B.

In: Journal of Water Resources Planning and Management, Vol. 138, No. 4, 01.01.2012, p. 342-355.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Influence of deregulated electricity markets on hydropower generation and downstream flow regime

AU - Kern, Jordan D.

AU - Characklis, Gregory W.

AU - Doyle, Martin W.

AU - Blumsack, Seth Adam

AU - Whisnant, Richard B.

PY - 2012/1/1

Y1 - 2012/1/1

N2 - The flow regime of rivers is a complex but important measure of environmental quality and one that can be significantly impacted by conventional hydropower generation. While traditional hydropower scheduling creates a periodicity in downstream flows corresponding to seasonal and daily electricity demand patterns, deregulated electricity markets may provide financial incentives to further alter flows, as utilities respond to hourly market dynamics. This study investigates the potential for deregulated markets to impact both a hydropower utility's revenue stream and downstream flow regimes. Six operating scenarios are explored: (1-2) full-market participation (including real-time energy), with and without flow reregulation; (3) day-ahead market only; and (4-6) run-of-river operations (ROR), with and without flood control and flow reregulation. Results suggest that, relative to a day-ahead-only scenario, the scale of any differences in flow regime resulting from full-market participation is relatively small compared to the additional revenue-generating potential of such a strategy. Implementing a run-of-river policy frequently yields "more natural" flowregimes than the day-ahead only scenario; but, in some cases these improvements are modest, and in others the ROR scenarios exacerbate deviation from unregulated flows. Regardless, the effects of implementing an ROR strategy come at a substantial cost in terms of foregone hydropower revenue. DOI: 10.1061/(ASCE)WR.1943-5452 .0000183.

AB - The flow regime of rivers is a complex but important measure of environmental quality and one that can be significantly impacted by conventional hydropower generation. While traditional hydropower scheduling creates a periodicity in downstream flows corresponding to seasonal and daily electricity demand patterns, deregulated electricity markets may provide financial incentives to further alter flows, as utilities respond to hourly market dynamics. This study investigates the potential for deregulated markets to impact both a hydropower utility's revenue stream and downstream flow regimes. Six operating scenarios are explored: (1-2) full-market participation (including real-time energy), with and without flow reregulation; (3) day-ahead market only; and (4-6) run-of-river operations (ROR), with and without flood control and flow reregulation. Results suggest that, relative to a day-ahead-only scenario, the scale of any differences in flow regime resulting from full-market participation is relatively small compared to the additional revenue-generating potential of such a strategy. Implementing a run-of-river policy frequently yields "more natural" flowregimes than the day-ahead only scenario; but, in some cases these improvements are modest, and in others the ROR scenarios exacerbate deviation from unregulated flows. Regardless, the effects of implementing an ROR strategy come at a substantial cost in terms of foregone hydropower revenue. DOI: 10.1061/(ASCE)WR.1943-5452 .0000183.

UR - http://www.scopus.com/inward/record.url?scp=84876709705&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84876709705&partnerID=8YFLogxK

U2 - 10.1061/(ASCE)WR.1943-5452.0000183

DO - 10.1061/(ASCE)WR.1943-5452.0000183

M3 - Article

VL - 138

SP - 342

EP - 355

JO - Journal of Water Resources Planning and Management - ASCE

JF - Journal of Water Resources Planning and Management - ASCE

SN - 0733-9496

IS - 4

ER -