Declining nuclear era and opportunities for hydropower: a new paper on JWRPM

Hydropower systems contribute to the welfare of a country by producing renewable and clean electricity and by generating revenue. Market liberalization and increasing share of new renewable energy sources, with associated increase in price volatility, are profoundly reshaping hydropower operations in many countries where these developments have already taken place. In this evolving context, some European countries are phasing out nuclear power plants and looking for alternatives to replace the lost production share. Hydropower is one of the candidates, particularly in water-abundant hydrological regions, where large storage hydropower systems contribute a big share of the production. Yet, shifting current revenue-oriented operations toward a production-maximizing strategy might come to the cost of a reduction in income for hydropower companies. In this paper, we specifically explore trade-off between maximizing hydropower electricity production and revenue in deregulated markets. Our results show that a production-driven operation might have strong consequences on the hydropower company income, suggesting that there is a low rate of substitution between the two objectives in the current energy market situation. More HERE