Managing Hidroelectrica Espanola’s hydroelectric power system

Beginning in 1984, Algorithmics Inc. together with Hidroeléctrica Española, developed and implemented a hierarchy of models, to assist Hidroeléctrica Española in managing its system of reservoirs used for generating hydroelectric power. These models incorporate major technological advances in modeling and solution methods. Moreover, for the first time, the technology upon which they are based is transferable to other hydroelectric utilities. The authors developed new generic algorithms for large-scale nonlinear programming and for specializations to network flow optimization to permit extremely rapid solution and thorough optimal analysis. The models have profoundly affected long-term planning and the operation of Hidroeléctrica’s reservoirs. Apart from the intangible benefits of completely transforming the level of modeling expertise in the company, increasing operational security, and providing better and more consistent management of the reservoir system, the direct savings as a result of their use amounts to approximately two million dollars annually.