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Dispatch Method for Independently Owned Hydropower Plants in the Same River Flow

This paper proposes a coexistence model for two independent companies both operating hydropower plants in the same river flow, based on a case study of the Cetina river basin in Croatia. Companies are participants of the day-ahead electricity market. The incumbent company owns the existing hydropower plants and holds concessions for the water. The new company decides to build a pump storage hydropower plant that uses one of the existing reservoirs as its lower reservoir. Meeting reservoir water balance is affected by decisions by both companies which are independently seeking maximal profit. Methods for water use settlement and preventing of spillage are proposed. A mixed-integer linear programming approach is used. Head effects on output power levels are also considered. Existences of dispatches that satisfy both companies are shown.