Simulation and optimization of multiple points hedging policies for operation of Cameron Highland hydropower reservoir system, Malaysia

Although hydropower generation has obvious advantages, but many of hydropower reservoir systems are still not operated efficiently and being operated based on experience. It is noticeable that even small improvement in operational rules can improve the efficiency of hydropower system. Since the output of hydropower generation depends on water release and water head, the concept of hedging and rationing can be used to minimize water release, maximize storage in the reservoir and increase water level in the reservoir. In this research, three competing hedging policies namely, one-point, two-point, and three-point are applied in order to optimize and improve the current operational policies used to generate hydropower in Cameron Highland hydropower system. The results indicate that the output of power generation in the studied system can be increased around 13% if the proposed hedging policies will be followed. Moreover, the discrepancies between highest and lowest monthly mean power generation can be reduced from 31% to 10% if the proposed hedging policies are followed in operating the studied system. This means that hedging policies will scatter the power supply in the operational period and increase stability of the system. Based on performance criteria, the best performance of the system is obtained from applying three-point hedging policy. The above results show the applicability of the proposed operational policy and improvement in power production. Keywords: Hedging policies; hydropower; reservoir system; operation; reservoir performance indices