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An optimal hydrothermal planning model for the New Zealand power system

Abstract The Stochastic Dual Dynamic Programming software is a mathematical programming model for medium and long term planning of generation and transmission systems. SDDP applies stochastic dynamic programming to a high dimensional problem which can not be solved by standard techniques. A recent study by Transpower NZ Ltd has successfully tested this model on the New Zealand power system. The requirements for a stochastic hydro-thermal optimization are described, the principles of the model are outlined, some results from a trial study are presented and possible applications are discussed.