A novel strong duality-based reformulation for trilevel infrastructure models in energy systems development

Olli Herrala, Steven A. Gabriel, Fabricio Oliveira*, Tommi Ekholm

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

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Abstract

We explore the class of trilevel equilibrium problems with a focus on energy-environmental applications and present a novel single-level reformulation for such problems, based on strong duality. To the best of our knowledge, only one alternative single-level reformulation for trilevel problems exists. This reformulation uses a representation of the bottom-level solution set, whereas we propose a reformulation based on strong duality. Our novel reformulation is compared to this existing formulation, discussing both model sizes and computational performance. In particular, we apply this trilevel framework to a power market model, exploring the possibilities of an international policymaker in reducing emissions of the system. Using the proposed approach, we are able to obtain globally optimal solutions for a five-node case study representing the Nordic countries and assess the impact of a carbon tax on the electricity production portfolio.

Original languageEnglish
Pages (from-to)1-16
Number of pages16
JournalJournal of the Operational Research Society
DOIs
Publication statusE-pub ahead of print - 2024
MoE publication typeA1 Journal article-refereed

Keywords

  • bilevel optimisation
  • Equilibrium modelling
  • power systems modelling

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