Bilevel optimization to deal with demand response in power grids: models, methods and challenges

This paper presents a review of selected models, methods, and challenges associated with the use of bilevel optimization in problems that involve consumers’ demand response arising in the power sector. The main formulations and concepts of bilevel optimization are presented. The importance of demand...

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Published inTOP Vol. 28; no. 3; pp. 814 - 842
Main Authors Henggeler Antunes, Carlos, Alves, Maria João, Ecer, Billur
Format Journal Article
LanguageEnglish
Published Berlin/Heidelberg Springer Berlin Heidelberg 01.10.2020
Springer Nature B.V
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ISSN1134-5764
1863-8279
DOI10.1007/s11750-020-00573-y

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Abstract This paper presents a review of selected models, methods, and challenges associated with the use of bilevel optimization in problems that involve consumers’ demand response arising in the power sector. The main formulations and concepts of bilevel optimization are presented. The importance of demand response as a “dispatchable” resource in the evolution of power networks to smart grids is emphasized. The hierarchical nature of the interaction between decision-makers controlling different sets of variables in several problems involving demand response is highlighted, which establishes bilevel optimization as an adequate approach to decision support. The main concepts and solution approaches to those problems are underlined, in the context of the theoretical, methodological, and computational issues associated with bilevel optimization.
AbstractList This paper presents a review of selected models, methods, and challenges associated with the use of bilevel optimization in problems that involve consumers’ demand response arising in the power sector. The main formulations and concepts of bilevel optimization are presented. The importance of demand response as a “dispatchable” resource in the evolution of power networks to smart grids is emphasized. The hierarchical nature of the interaction between decision-makers controlling different sets of variables in several problems involving demand response is highlighted, which establishes bilevel optimization as an adequate approach to decision support. The main concepts and solution approaches to those problems are underlined, in the context of the theoretical, methodological, and computational issues associated with bilevel optimization.
Author Ecer, Billur
Henggeler Antunes, Carlos
Alves, Maria João
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Issue 3
Keywords Bilevel optimization
90C26 (Nonconvex programming, global optimization)
90C90 (Applications of mathematical programming)
Demand response
Power grids
90-02 (Research exposition (monographs, survey articles) pertaining to operations research mathematical programming)
Power systems
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Snippet This paper presents a review of selected models, methods, and challenges associated with the use of bilevel optimization in problems that involve consumers’...
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SubjectTerms Business and Management
Decision making
Economic Theory/Quantitative Economics/Mathematical Methods
Economics
Finance
Industrial and Production Engineering
Insurance
Management
Operations Research/Decision Theory
Optimization
Original Paper
Power consumption
Smart grid
Statistics for Business
Title Bilevel optimization to deal with demand response in power grids: models, methods and challenges
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Volume 28
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