A Bilevel Approach for Optimal Price-Setting of Time-and-Level-of-Use Tariffs
Mathieu Besançon, Miguel F. Anjos, Luce Brotcorne, Juan A. Gómez-Herrera
Abstract
The Time-and-Level-of-Use (TLOU) system is a recently developed approach for electric energy pricing, extending Time-of-Use with an energy capacity that customers can book in advance for a given consumption time. We define a bilevel optimization model for determining the pricing parameters of TLOU, maximizing the supplier revenue while anticipating an optimal reaction of the customer. A solution approach is built, based on the discrete finite set of optimality candidates of the lower-level customer problem.
Topics & Concepts
Bilevel optimizationMathematical optimizationRevenueComputer scienceSet (abstract data type)Energy consumptionConsumption (sociology)Revenue managementOperations researchOptimization problemEconomicsMathematicsEngineeringSociologyProgramming languageSocial scienceAccountingElectrical engineeringSmart Grid Energy ManagementEnergy Efficiency and ManagementElectric Vehicles and Infrastructure