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The purpose of this study is to develop a general algorithm to solve the short-term hydroelectric scheduling problem in a robust, flexible and fast way, and which retains the same performances for either a small or a large-scale problem. The solution is based on the discrete maximum principle. Gradient method is used to solve the two-point boundary value problem. To deal with difficulties posed by the state variable constraints we use the augmented Lagrangian method. This paper is particularly concerned with the handling of bonds on the state variables utilizing augmented Lagrangian method.

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