Can re-regulation reservoirs and batteries cost-effectively mitigate sub-daily hydropeaking?

To compensate for mismatches between generation and load, hydropower plants frequently operate in strong hydropeaking schemes, which is harmful to the downstream ecosystem. Furthermore, new power market structures and variable renewable systems may exacerbate this behavior. Ecological constraints (minimum flows, maximum ramps) are frequently used to mitigate hydropeaking, but these stand in direct tradeoff with the operational flexibility required for integrating renewable technologies. Fortunately, there are also physical methods (i.e. re-regulation reservoirs and batteries) but to date, there are no studies about their cost-effectiveness for hydropeaking mitigation. This study aims to fill that gap. For this, we formulate an hourly mixed-integer linear optimization model to plan the weekly operation of a hydro-thermal-renewable power system from southern Chile. The opportunity cost of water (needed for this weekly scheduling) is obtained from a mid-term programming solved with dynamic programming. We compare the current (unconstrained) hydropower operation with an ecologically constrained operation. The resulting cost increase is then contrasted with the annual payments necessary for the physical hydropeaking mitigation options. For highly constrained operations, both re-regulation reservoirs and batteries show to be economically attractive for hydropeaking mitigation. For intermediate constrained scenarios, re-regulation reservoirs are still economic, whereas batteries can be a viable solution only if they become cheaper in future. Given current cost projections, their break-even point (for hydropeaking mitigation) is expected within the next ten years. Finally, less stringent hydropeaking constraints do not justify physical mitigation measures, as the necessary flexibility can be provided by other power plants of the system.