Efficient operation of a multi-purpose reservoir in Chile: Tradeoffs between irrigation and hydropower production

Abstract:

This study proposes a method to develop efficient operational policies for a reservoir the southern Chile. The main water uses in this system are hydropower and irrigation, with conflicting seasonal demands. The conflict between these two uses is currently managed through a so-called “irrigation agreement” which defines a series of operational conditions on the reservoir by restricting volumes used for power production depending on reservoir storage level. Other than that, the reservoir operation is driven by cost-minimization over the power grid.

Recent evidence shows an increasing degree of conflict in this basin, which suggests that the static approach of irrigation agreements, might no longer be appropriate. Moreover, this agreement could be revised in light of decreased water availability. This problem poses a challenge related to the spatial scope of analysis. Thus, irrigation benefits are driven by decisions made within the basin, whereas hydropower benefits depend on the operation of the entire power grid. Exploring the tradeoffs between these two water uses involves modeling both scales.

The proposed methodology integrates information from both a grid-wide power operations model and a basin-wide agro-economic model into a decision model for optimal reservoir operation. The first model, a hydrothermal coordination tool, schedules power production by each plant in the grid, and allows capturing technical and economic aspects to the operation of hydropower reservoirs. The agro-economic model incorporates economic features of irrigation in the basin, and allows obtaining irrigation water demand functions. Finally, the results of both models are integrated into a single model for optimal reservoir operation considering the tradeoffs between the two uses.

The result of the joint operation of water resources, show a flexible coordination of uses, revealing the opportunity cost of irrigation, which it gives the possibility of negotiating transfers of water to hydropower in dry years, with the aim of obtaining greater benefits from water use in the basin