A case of hydro scheduling with a stochastic price model

In the deregulated Norwegian power system spot price variations strongly affect the power companies' incomes, and future spot price uncertainty is an important aspect of hydro power plant scheduling. It is shown how a simple stochastic model for the spot price can be introduced to account for price uncertainty in medium-term hydro scheduling, and a numerical test example for a multireservoir system is given. The results have potential applications in hydro scheduling.