Seasonal and diurnal electricity costing: A case study of Sri Lanka

Traditional approaches of electricity generation cost analysis have overlooked the crucial seasonal cum diurnal variations, particularly in relation to hydropower generation. The inherently stochastic nature of climate and weather conditions causes significant fluctuations in electricity generation costs, making it essential to assess the instantaneous variation of water value of existing reservoirs instead of relying on static or constant values. This research paper presents a groundbreaking economic dispatch framework, and it proposes 3 innovative techniques to evaluate water value. These methods are then applied to calculate electricity generation costs, providing a comparative analysis of each approach. Furthermore, the study conducts a quantitative assessment of water value for electricity generation versus agricultural use, while extending the water value analysis to individual reservoirs instead of a uniform national value. The findings offer critical insights for policy formulation, with a focus on the Sri Lankan power system as a case study.