Multilevel mixed-integer nonlinear optimization for gas markets (B08)

• Subject Area: Economic Policy, Applied Economics
• Term: since 2018
• Project identifier: Deutsche Forschungsgemeinschaft (DFG) - Project number 239904186

The goal of this subproject is to develop mathematical methods to solve mixed-integer and nonlinear multilevel optimization problems for gas markets coupled with markets of other energy sectors such as electricity. Motivated by the two cases of cooperating or non-cooperating network operators of the different sectors, we investigate on the one hand bilevel problems with potentially multiple solutions on the lower level, for which we establish methods to assess pessimistic solutions. On the other hand, we study multi-leader-follower games and develop problem-tailored solution approaches. Finally, based on our mathematical and algorithmic developments, we characterize equilibria in coupled energy systems for different combinations of market designs in the considered sectors.

• DFG Programme: CRC/Transregios
• Subproject of: TRR 154: Mathematical modelling, simulation and optimization using the example of gas networks
• Applicant Institution: Friedrich-Alexander-Universität Erlangen-Nürnberg
• Project Heads: Professorin Dr. Veronika Grimm; Julia Grübel, since 7/2022; Professor Dr. Alexander Martin, since 7/2022; Professor Dr. Martin Schmidt, until 6/2022