TY - CHAP
T1 - Applications of Bilevel Optimization in Energy and Electricity Markets
AU - Wogrin, Sonja
AU - Pineda, Salvador
AU - Tejada-Arango, Diego A.
PY - 2020
Y1 - 2020
N2 - Ever since the beginning of the liberalization process of the energy sector and the arrival of electricity markets, decision making has gone away from centralized planners and has become the responsibility of many different entities such as market operators, private generation companies, transmission system operators and many more. The interaction and sequence in which these entities make decisions in liberalized market frameworks have led to a renaissance of Stackelberg-type games referred to as bilevel problems, which capture the natural hierarchy in many decision-making processes in power systems. This chapter aims at demonstrating the crucial insights that such models can provide, and at providing a broad overview of the plethora of the applications of bilevel programming in energy and electricity markets. Finally, a numerical example is included for illustrative purposes.
AB - Ever since the beginning of the liberalization process of the energy sector and the arrival of electricity markets, decision making has gone away from centralized planners and has become the responsibility of many different entities such as market operators, private generation companies, transmission system operators and many more. The interaction and sequence in which these entities make decisions in liberalized market frameworks have led to a renaissance of Stackelberg-type games referred to as bilevel problems, which capture the natural hierarchy in many decision-making processes in power systems. This chapter aims at demonstrating the crucial insights that such models can provide, and at providing a broad overview of the plethora of the applications of bilevel programming in energy and electricity markets. Finally, a numerical example is included for illustrative purposes.
KW - Electricity markets
KW - Energy applications
KW - Energy storage systems
KW - Generation expansion planning
KW - Strategic bidding
KW - Transmission expansion planning
UR - http://www.scopus.com/inward/record.url?scp=85096898672&partnerID=8YFLogxK
U2 - 10.1007/978-3-030-52119-6_5
DO - 10.1007/978-3-030-52119-6_5
M3 - Chapter
AN - SCOPUS:85096898672
T3 - Springer Optimization and Its Applications
SP - 139
EP - 168
BT - Springer Optimization and Its Applications
PB - Springer
ER -