Original scientific paper
RISK-AVERSE APPROACH FOR ASSESSMENT OF INVESTMENT IN A RUN-OF-THE-RIVER POWER PLANTS WHILE CONSIDERING REDUCED WATER AVAILABILITY
IVAN RAJŠL
; University of Zagreb Faculty of Electrical Engineering and Computing
SLAVKO KRAJCAR
; University of Zagreb Faculty of Electrical Engineering and Computing
PERICA ILAK
; University of Zagreb Faculty of Electrical Engineering and Computing
Abstract
Investment in the facility for harnessing a stream of water is usually
characterized by long payback period. Hence investment choice not only needs to
be optimal, but it also needs to be robust enough to cope with uncertainties which
occur during payback period. In this research, a family of flow duration curves is
created to model stochastic nature of water availability. The risk-constrained
approach for assessment of investments in cascaded hydropower plants is proposed
in a form of a mixed-integer linear programming. Proposed approach will manage a
risk of large financial losses induced by these uncertainties. The project of run-ofriver
power plants on the Sava river stretch (Croatia) from border with Slovenia to
the city of Sisak is analyzed.
Keywords
Assessment of investment; Small hydropower plant; Mixed-integer linear programming; Conditional value-at-risk; Sava river; Croatia
Hrčak ID:
199281
URI
Publication date:
15.9.2017.
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