A novel strong duality-based reformulation for trilevel infrastructure models in energy systems development
2024
Herrala, Olli | Gabriel, Steven A. | Oliveira, Fabricio | Ekholm, Tommi | Ilmatieteen laitos | Finnish Meteorological Institute | 0000-0002-9124-6289
We explore the class of trilevel equilibrium problems with a focus on energy-environmental applications and present a novel single-level reformulation for such problems, based on strong duality. To the best of our knowledge, only one alternative single-level reformulation for trilevel problems exists. This reformulation uses a representation of the bottom-level solution set, whereas we propose a reformulation based on strong duality. Our novel reformulation is compared to this existing formulation, discussing both model sizes and computational performance. In particular, we apply this trilevel framework to a power market model, exploring the possibilities of an international policymaker in reducing emissions of the system. Using the proposed approach, we are able to obtain globally optimal solutions for a five-node case study representing the Nordic countries and assess the impact of a carbon tax on the electricity production portfolio.
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