The capacity benefit of hydro

• Given a simple daily load profile consisting of an eight-hour long 2,000 MW peak-load period surrounded by two eight-hour long 600 MW off-peak periods . . .

• Suppose the hydro’s capacity, energy and variable cost are 300 MW; 2,400 MWh and 0 $/MWh (free H2O) and that the production cost for the remainder of the power system is given by:

C(P) = 0.1P2 - 100P + 85,000 $/h. Where P is the load in MW confronting the remainder of the system.

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