Research on Optimal Long-term Operation of Hydroelectric Rich Regions Considering Inter Provincial Transactions

According to the requirements stipulated in cross-provincial electricity trading contracts for annual electricity volume agreements, monthly plans, and power exchange curves, an optimization model for inter-provincial electricity trading strategies during dry and wet seasons in hydro-rich regions has been developed based on a long-term model. This study extensively explores the long-term optimization model by incorporating future cost functions and employing a stochastic dual dynamic programming (SDDP) solution algorithm. Simulation results reveal that the comprehensive operating costs of the model developed in this study are only 71.8% of those associated with models that do not account for inter-provincial electricity trading strategies. Furthermore, the optimized model not only enhances external electricity transmission and procurement plans for hydro-rich regions but also seeks to reduce purchasing costs for provincial users while maximizing revenue from external electricity transactions. Overall, this research offers theoretical frameworks for devising annual and monthly electricity trading strategies tailored to hydro-rich regions.