Optimal Extension of a System of Hydro Energy Storage Plants

In 1988 a local Austrian Electricity Board asked for advice concerning the extension of a system of two medium sized storage plants, (see fig. 1) As both the influx and the demand are random variables stochastic optimization would be a possibility (see e.g. [2]). W.r.t. the high nonlinearity of our model, however, we prefer a deterministic approach.