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A trilevel model for best response in energy demand-side management

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  • Aussel, Didier
  • Brotcorne, Luce
  • Lepaul, Sébastien
  • von Niederhäusern, Léonard

Abstract

Demand-side management (DSM) is a powerful tool to efficiently manage the consumption of energy. DSM relies on various techniques and means. In this work, we propose a trilevel energy market model for load shifting induced by time-of-use pricing. Four kinds of actors are involved: electricity suppliers (sell energy), local agents (buy, sell and consume), aggregators (buy and sell) and end users (consume). The interactions among these actors lead to a trilevel multi-leader–multi-follower game. Solving such games is known to be hard, thus we assume that the decision variables of all electricity suppliers but one are known and optimize the decisions of the remaining supplier. This leads to a single-leader–multi-follower game, which aims to compute the leader’s best response to the decisions of his competitors.

Suggested Citation

  • Aussel, Didier & Brotcorne, Luce & Lepaul, Sébastien & von Niederhäusern, Léonard, 2020. "A trilevel model for best response in energy demand-side management," European Journal of Operational Research, Elsevier, vol. 281(2), pages 299-315.
    • Handle: RePEc:eee:ejores:v:281:y:2020:i:2:p:299-315
    DOI: 10.1016/j.ejor.2019.03.005
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    1. Jens Hönen & Johann L. Hurink & Bert Zwart, 2023. "A classification scheme for local energy trading," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 45(1), pages 85-118, March.
    2. Anjos, Miguel F. & Brotcorne, Luce & Gomez-Herrera, Juan A., 2021. "Optimal setting of time-and-level-of-use prices for an electricity supplier," Energy, Elsevier, vol. 225(C).
    3. Wang, Haiyang & Zhang, Chenghui & Li, Ke & Liu, Shuai & Li, Shuzhen & Wang, Yu, 2021. "Distributed coordinative transaction of a community integrated energy system based on a tri-level game model," Applied Energy, Elsevier, vol. 295(C).
    4. Navid Rezaei & Abdollah Ahmadi & Mohammadhossein Deihimi, 2022. "A Comprehensive Review of Demand-Side Management Based on Analysis of Productivity: Techniques and Applications," Energies, MDPI, vol. 15(20), pages 1-28, October.
    5. Yao, Wenliang & Wang, Chengfu & Yang, Ming & Wang, Kang & Dong, Xiaoming & Zhang, Zhenwei, 2023. "A tri-layer decision-making framework for IES considering the interaction of integrated demand response and multi-energy market clearing," Applied Energy, Elsevier, vol. 342(C).
    6. Soares, Inês & Alves, Maria João & Henggeler Antunes, Carlos, 2021. "A deterministic bounding procedure for the global optimization of a bi-level mixed-integer problem," European Journal of Operational Research, Elsevier, vol. 291(1), pages 52-66.
    7. Carlos Henggeler Antunes & Maria João Alves & Billur Ecer, 2020. "Bilevel optimization to deal with demand response in power grids: models, methods and challenges," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(3), pages 814-842, October.
    8. Bjørndal, Endre & Bjørndal, Mette Helene & Coniglio, Stefano & Körner, Marc-Fabian & Leinauer, Christina & Weibelzahl, Martin, 2023. "Energy storage operation and electricity market design: On the market power of monopolistic storage operators," European Journal of Operational Research, Elsevier, vol. 307(2), pages 887-909.
    9. Li, Longxi, 2021. "Coordination between smart distribution networks and multi-microgrids considering demand side management: A trilevel framework," Omega, Elsevier, vol. 102(C).
    10. Arega Getaneh Abate & Rosana Riccardi & Carlos Ruiz, 2021. "Dynamic tariffs-based demand response in retail electricity market under uncertainty," Papers 2105.03405, arXiv.org, revised Feb 2024.

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