Multi-Level Optimization of Hydro Power Plants – The Case of Incompleteness

Standardized products tradable in the electricity market cannot replicate the production schedules of storage power plants. This reveals the incompleteness of those markets, which we tackle with three different, arbitrage-free price shapes in the market areas Germany/Austria, Switzerland, France and Austria. We assess the price range of the associated valuations and its implication to the accounting. In response to these broader practical requirements, the ior/cf-HSG concentrates on further developing a decision support system, which covers the tasks of marketing hydro power capacities and risk management in an integrated way. The current, liberalized electricity markets with both physical and financial electricity trading define the rules for an effective decision support system.