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A decomposition-coordination method for the cascade interconnected dams problem

Hydroelectricity is the main renewable energy which is produced in France (over 10% of the country annual production). It provides a clean (no greenhouse gases emissions) and fast-usable energy that is cheap and substitutable for the thermal one. We address the question of the production management of cascadeinterconnected dams by means of a finite-horizon Markov decision process. Solving such a problem is not straightforward since it displays a large size, so is likely to suffer from the curse of dimensionality. We handle it with a decomposition-coordination algorithm that we adapt by approximation to the stochastic case.