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

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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.

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Acknowledgements

This work was partially supported by projects UIBD/00308/2020 and UIDB/05037/2020, and by the European Regional Development Fund through the COMPETE 2020 Programme, FCT—Portuguese Foundation for Science and Technology and Regional Operational Program of the Center Region (CENTRO2020) within projects ESGRIDS (POCI-01-0145-FEDER-016434), SUSPENSE (CENTRO-01-0145-FEDER-000006) and MAnAGER (POCI-01-0145-FEDER-028040).

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Authors and Affiliations

  1. INESC Coimbra, Department of Electrical and Computer Engineering, University of Coimbra, Rua Sílvio Lima, Polo 2, 3030-290, Coimbra, Portugal

    Carlos Henggeler Antunes

  2. CeBER and Faculty of Economics, University of Coimbra, Av. Dias da Silva 165, 3004-512, Coimbra, Portugal

    Maria João Alves

  3. Industrial Engineering Department, Ankara Yildirim Beyazit University, Ankara, Turkey

    Billur Ecer

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  1. Carlos Henggeler Antunes
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Correspondence to Carlos Henggeler Antunes.

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Henggeler Antunes, C., Alves, M.J. & Ecer, B. Bilevel optimization to deal with demand response in power grids: models, methods and challenges. TOP 28, 814–842 (2020). https://doi.org/10.1007/s11750-020-00573-y

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