Background: Several reservoir systems have been constructed for hydropower generation around the world. Hydropower offers an economical source of electricity with reduce carbon emissions. Therefore, it is such a clean and renewable source of energy. Reservoirs that generate hydropower are typically operated with the goal of maximizing energy revenue. Yet, reservoir systems are inefficiently operated and manage according to policies determined at the construction time. It is worth noting that with little enhancement in operation of reservoir system, there could be an increase in efficiency of the scheme for many consumers.
Methods: This research develops simulation-optimization models that reflect discrete hedging policy (DHP) to manage and operate hydropower reservoir system and analyse it in both single and multi-reservoir system. Accordingly, three operational models (2 single reservoir systems and 1 multi-reservoir system) were constructed and optimized by genetic algorithm (GA). Maximizing the total power generation in horizontal time is chosen as an objective function in order to improve the functional efficiency in hydropower production with consideration to operational and physical limitations. The constructed models, which is a cascade hydropower reservoirs system have been tested and evaluated in the Cameron Highland and Batang Padang in Malaysia.
Results: According to the given results, usage of DHP for hydropower reservoir system operation could increase the power generation output to nearly 13% in the studied reservoir system compared to present operating policy (TNB operation). This substantial increase in power production will enhance economic development. Moreover, the given results of single and multi-reservoir systems affirmed that hedging policy could manage the single system much better than operation of the multi-reservoir system.
Conclusion: It can be summarized that DHP is an efficient and feasible policy, which could be used for the operation of existing or new hydropower reservoir system.