Solving the Time-Ahead Pricing of Energy Supply Problem with Nonlinear Utility Function for Consumers via a Bilevel Optimization Approach
The time-ahead pricing of energy supply problem is one decision-making process within the management of the distribution electricity system. Specifically, this problem aims to determine how to price the energy for end consumers. We present a bilevel optimization strategy to solve the problem taking into account that given the price of energy at a period of time, the end customers have the capacity to change their energy consumption behavior. Additionally, we consider multiple consumption profiles to segment the customers adding flexibility in the model for the decision maker. Furthermore, we solve nonlinear optimization models embedded in the bilevel optimization approach through piecewise linearization. Finally, we test our solution strategy retrieving available historical data from public sources.
Name: Solving the Time-Ahead Pricing.pdf