Optimal Investment in Hydroelectric Energy

Yıl 2019, Cilt: 2 Sayı: 2, 407 - 422, 30.09.2019

Mustafa Akan

Öz

Assuming that the total energy demand is satisfied by oil and
hydroelectric energy, optimal investment in hydroelectric production capacity
which is a function of the size of the dam and the water availability, which
changes by seasons, is analyzed using optimal control theory. Investment cost
in dam capacity depends not only on the purchase cost of additional capacity
but also on the installation of that capacity. The optimal investment is to
invest heavily in early stages by gradually decreasing it until the long-term
equilibrium point is reached. The equilibrium point also oscillates but stable.
However, since the dam size is usually large compared to the amplitude of the
oscillation, the optimal path and the equilibrium level of investment can be considered
to be functions of relevant parameters of the problem only.

Anahtar Kelimeler

Hydroelectric, Optimal Control Investment

Kaynakça

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