Kleinert T, Schmidt M (2019)
Publication Language: English
Publication Type: Journal article, Original article
Publication year: 2019
Book Volume: 33
Pages Range: 43-69
URI: https://www.sciencedirect.com/science/article/pii/S1572528618300288
DOI: 10.1016/j.disopt.2019.02.002
We consider the combination of a network design and graph partitioning model in a multilevel framework for determining the optimal design of zonal pricing electricity markets. This together with nonlinearities due to economic modeling yields extremely challenging mixed-integer nonlinear multilevel models for which we develop two problem-tailored solution techniques. The first approach relies on an equivalent bilevel formulation and a standard KKT transformation thereof, whereas the second is a tailored generalized Benders decomposition. We prove for both methods that they yield global optimal solutions. Finally, we compare the approaches in a numerical study and show that the tailored Benders approach clearly outperforms the standard KKT transformation.
APA:
Kleinert, T., & Schmidt, M. (2019). Global Optimization of Multilevel Electricity Market Models Including Network Design and Graph Partitioning. Discrete Optimization, 33, 43-69. https://dx.doi.org/10.1016/j.disopt.2019.02.002
MLA:
Kleinert, Thomas, and Martin Schmidt. "Global Optimization of Multilevel Electricity Market Models Including Network Design and Graph Partitioning." Discrete Optimization 33 (2019): 43-69.
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