A PDE-Constrained Generalized Nash Equilibrium Approach for Modeling Gas Markets with Transport

Grimm V, Hintermüller M, Huber O, Schewe L, Schmidt M, Zöttl G (2021)

Publication Type: Other publication type

Publication year: 2021

URI: https://opus4.kobv.de/opus4-trr154/frontdoor/index/index/start/14/rows/10/sortfield/score/sortorder/desc/searchtype/simple/query/zöttl/docId/458

Abstract

We analyze Generalized Nash Equilibrium Problems (GNEPs) for which the objectives of the individuals are interdependent and shared constraints are governed by a system of partial differential equations (PDEs). This allows us to model the strategic interaction of competing firms, which explicitly take into account the dynamics of transporting a commodity, such as natural gas, through a network. We establish existence of a variational equilibrium, which solves the considered GNEP. We identify a reformulation of the original equilibrium problem that is suited to derive and establish a solution algorithm. Based on the solutions for a test instance, we finally illustrate how our results can be used to analyze dynamic aspects such as linepack in the context of liberalized gas markets.

Authors with CRIS profile

Veronika Grimm Lehrstuhl für Volkswirtschaftslehre, insbesondere Wirtschaftstheorie Karl Gregor Zöttl Professur für Volkswirtschaftslehre

Related research project(s)

Multilevel mixed-integer nonlinear optimization for gas markets (B08) (2018 - 2022) TRR 154: Mathematical Modelling, Simulation and Optimisation Using the Example of Gas Networks (TRR 154) July 1, 2018 - June 30, 2022 B09 „Strategische Buchungsentscheidungen im Entry-Exit-System“ TRR 154: Mathematical Modelling, Simulation and Optimisation Using the Example of Gas Networks (TRR 154) July 1, 2018 - June 30, 2022 Decomposition methods for mixed-integer optimal control (A05) (2018 - 2022) TRR 154: Mathematical Modelling, Simulation and Optimisation Using the Example of Gas Networks (TRR 154) July 1, 2018 - June 30, 2022 MIP techniques for equilibrium models with integer constraints (B07) (2018 - 2022) TRR 154: Mathematical Modelling, Simulation and Optimisation Using the Example of Gas Networks (TRR 154) July 1, 2018 - June 30, 2022

Involved external institutions

University of Edinburgh GB United Kingdom (GB) Universität Trier DE Germany (DE) Humboldt-Universität zu Berlin DE Germany (DE)

How to cite

APA:

Grimm, V., Hintermüller, M., Huber, O., Schewe, L., Schmidt, M., & Zöttl, G. (2021). A PDE-Constrained Generalized Nash Equilibrium Approach for Modeling Gas Markets with Transport.

MLA:

Grimm, Veronika, et al. A PDE-Constrained Generalized Nash Equilibrium Approach for Modeling Gas Markets with Transport. 2021.

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