An optimization model for selecting and sizing potential reservoir and hydr
opower plant sites on river basins is presented. The model improves on the
work of Lall and Miller by replacing the modified sequent peak algorithm fo
r sizing reservoirs with a behavior analysis algorithm that allows operatio
n of the reservoir system with realistic operating policies. A heuristic si
mulation procedure is used to assess the feasibility of developing self-sus
tainable hydropower plants at each site. A gradient (derivative) based opti
mization algorithm is employed to integrate these simulations into an optim
al screening model. To enhance the efficiency of the algorithm, the approxi
mate and expensive approach of evaluating derivatives by divided difference
s is replaced by automatic differentiation. A comparison of the computation
al performance shows that the optimal solution with automatic differentiati
on is obtained four times faster than with the divided difference method. T
he model is developed in the context of river basins in India.