An Optimal Policy for Operating a Multipurpose Reservoir

Abstract

This paper presents an analytically determined general optimal policy for operating a multipurpose reservoir and depicts it in graphical form. Piecewise linear cost functions are used to describe downstream flow costs, reservoir level costs, and costs incurred in meeting and not meeting power demands, the cost parameters involved in these functions being left arbitrary to allow wide applicability. The paper assumes random inflows into the reservoir, known power demands, and the availability of a finite-capacity auxiliary power source. It uses dynamic programming as an analytical, as opposed to numerical, tool in determining the general form of an optimal operating policy for this model.