Operational data analysis |
Maximizing efficiency and investment decisions with digital solutions
As hydropower operations continue to evolve, investment decisions are becoming increasingly complex. With the advent of advanced simulations and digital twin
technologies, hydropower operators are now able to make more data-driven, informed decisions that optimize their assets’ performance and long-term viability. To gain insight into how these tools are transforming the industry, Carrieann Stocks sat down with Adrian Ion, CTO at HYDROGRID, a leading provider of digital solutions for hydropower management
How can advanced simulations and digital twins be utilized in hydropower operations to optimize investment decisions? When considering how advanced simulations and digital twins can support investment decisions, we typically focus on three key use cases: 1. Portfolio optimization: This involves evaluating investments within an existing portfolio, such as replacing or adding a turbine, increasing pump capacity, or installing remote controls for gates. For instance, if I already have a hydropower plant, I may consider these upgrades to enhance its performance.
Above: Adrian Ion
2. Mergers and acquisitions (M&A): This scenario involves assessing the acquisition of additional hydropower assets. Here, the goal is to evaluate potential new assets that are not yet owned, requiring first-hand data to make informed decisions. Often, this data must come from simulations because the actual operational data isn’t directly accessible.
Below: HYDROGRID Cockpit: portfolio view
3. Regulatory changes: These are situations where regulatory authorities propose or implement new
rules, such as changes to concessions. Simulations are used to understand the financial and operational impacts of these changes under current and potential future conditions. What ties these scenarios together is the need for robust, first-hand data to make data-driven decisions. Simulations help provide this by creating realistic projections based on current and hypothetical conditions. Regarding digital twins: a digital twin of a
hydropower plant is an advanced tool that allows operators to simulate potential scenarios as if the changes (e.g., new turbines or regulatory constraints) had already been implemented. This enables comparisons between the existing and proposed setups under identical conditions. For example, simulations are performed using the same time window, inflows, and pricing to ensure accurate and actionable insights. In M&A scenarios, digital twins offer an objective, data-driven assessment of potential energy production and revenue generation for the asset under various operational modes.
What are the key metrics or outputs that these simulations generate to guide decision- making? Hydropower simulations, such as those offered by HYDROGRID Insight, produce detailed metrics and key performance indicators (KPIs) to guide investment decisions. The primary outputs include: Energy production: Detailed projections of the energy that could be generated under various scenarios. Revenue generation: Estimates of the revenue tied to different levels of energy production and market conditions.
Operational details: High-granularity data calculated at the hourly level and aggregated over days, months, and years. Comparative analysis: Metrics comparing the performance of current and simulated scenarios.
These outputs allow operators to deeply analyse both high-level trends and granular details, ensuring their decisions are thoroughly informed by data.
18 | February 2025 |
www.waterpowermagazine.com
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