PIECEWISE LINEAR APPROXIMATIONS OF THE HYDRO POWER PRODUCER PROBLEM
Keywords:
Piecewise linearization methods, Energy markets, Hydrothermal systems, Bilevel optimization
Abstract
This paper focuses on the solution of the problem faced by a hydro power producer that needs to determine the amount of power to offer to the market for a period of one year. To define the best offers, such producer must solve a bilevel optimization problem that is nonconvex and has local and global minima. The paper analyzes the performance of a piecewise linearization technique when applied to the solution of such problem. The procedure is tested in a small example and in an equivalent of the Brazilian system.
