Abstract
Once a hydroelectric power site is operational, its production is constrained both by the available hydraulic energy that drives the turbines and by the installed capacity that limits the pace at which hydraulic energy can be turned into electricity. Different costs are associated with these two constraints. Assuming generating equipment mix cost minimization, the optimal stacking order under the load duration curve is derived when production is stationary and when it is growing exponentially. The analysis throws some light on a fairly widespread feature of Canadian hydroelectric power development: limited hydro power. The history of hydro power site development in British Columbia, Manitoba, and Quebec displays features consistent with the analysis.
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