Hydropower Economics
Hydropower Economics provides qualitative economic analyses of how to utilize stored water in a hydropower system with fixed generating capacities. The problem is dynamic because water used today to generate electric power may alternatively be used tomorr
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Finn R. Førsund
Hydropower Economics Second Edition
International Series in Operations Research & Management Science Volume 217
Series Editor Camille C. Price Stephen F. Austin State University, TX, USA Associate Series Editor Joe Zhu Worcester Polytechnic Institute, MA, USA Founding Series Editor Frederick S. Hillier Stanford University, CA, USA
More information about this series at http://www.springer.com/series/6161
Finn R. Førsund
Hydropower Economics Second Edition
Finn R. Førsund Department of Economics University of Oslo Blindern, Norway
ISSN 0884-8289 ISSN 2214-7934 (electronic) ISBN 978-1-4899-7518-8 ISBN 978-1-4899-7519-5 (eBook) DOI 10.1007/978-1-4899-7519-5 Springer New York Heidelberg Dordrecht London Library of Congress Control Number: 2014947517 © Springer Science+Business Media New York 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Duplication of this publication or parts thereof is permitted only under the provisions of the Copyright Law of the Publisher’s location, in its current version, and permission for use must always be obtained from Springer. Permissions for use may be obtained through RightsLink at the Copyright Clearance Center. Violations are liable to prosecution under the respective Copyright Law. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. While the advice and information in this book are believed to be true and accurate at the date of publication, neither the authors nor the editors nor the publisher can accept any legal responsibility for any errors or omissions that may be made. The publisher makes no warranty, express or implied, with respect to the material contained herein. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)
To Lennart
Preface
The state organisation responsible for coordinating the hydropower electricity system in Norway (“Samkjøringen”) contacted me in 1990 about the advanced plan for deregulating the electricity system, separating generation, transmission, and distribution and introducing a wholesale market for electricity. It was felt that insights about the fundamental nature of running an electricit
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