Price

To find optimal strategies for discharge distribution, Prodrisk performs iterative backward recursions to compute a strategy and forward simulations to validate this strategy. In the forward simulation, Prodrisk uses historical price scenarios, usually one, where each price scenario uses a high number of simulation scenarios. In each simulation scenario or historical year, there is either one price for each week, or one price for each load period / price period within the week. With 3-hourly time resolution, every three hours of the week are assigned to one separate load period, resulting in a 56 price periods within the week. In the backward recursion, the price distribution is formulated as stochastic model, based on the input price forecast scenarios.

In Prodrisk, we define two main parameters for the price:

• Price periods: Defined in the input file pricefilename.PRI, pricefilename.csv or similar, see Price input format

• Price nodes: Defined in the input file pricefilename.PRISMOD. This file can be generated in genpris, see Price input format. For more information, see the LTM documentation.

This section contains information about how the price is used in Prodrisk.