The paper presents an optimization technique for scheduling of pumped-storage power plant operation up to one year horizon. A pumped-storage power plant is an energy source with fast time response consisting of upper and lower reservoir, which has ability to store excess electric energy in the upper reservoir in form of potential energy of water, which is pumped from the lower reservoir. Its importance increases as a tool for transmission system operator to control of power system stability, load balancing and frequency control due to the increase of amount of power generated from renewable energy sources characterized by the fluctuation of power output such as photovoltaic and wind power sources. Usually, it has part of capacity reserved for needs of transmission system operator and the remaining capacity can be used by the plant operator in commercial manner to increase of profit. The aim of the paper is to propose fast algorithm based on dynamic programming to optimize free capacity while complying with all the technical and operational restrictions.
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