Professor of Process Systems Engineering, Department of Chemical Engineering, Aristotle University of Thessaloniki
On the Optimization of Modern Energy Markets
This talk will present recent process systems engineering approaches to the optimization of modern energy markets. Systematic optimization-based frameworks will explore the interaction between power producers with conventional and wind generation portfolios participating in a network-constrained pool market. Various stochastic bi-level problems will be introduced to model the strategic behavior of each single energy producer. The upper-level problems maximize the producers’ expected profits and the lower-level problems optimizes the jointly cleared energy and balancing market under economic dispatch. Market participants’ offers are modeled using linear stepwise curves, and the stochastic wind power generation is realized through a set of plausible wind scenarios. The bi-level problems are recast into a mathematical program with equilibrium constraints (MPEC) with primal-dual formulation using the Karush-Kuhn-Tacker (KKT) optimality conditions and the strong duality theorem. The joint solution of all strategic producers’ MPECs constitutes an equilibrium program with equilibrium constraints (EPEC). The EPEC is reduced into an equivalent mixed integer linear program (MILP) by using disjunctive constraints. Different objective functions are applied to the final MILP to define market equilibria, and a single-iterate diagonalization process is used to justify those equilibria. The applicability and efficiency of the proposed mathematical frameworks is illustrated using several cases considering different types of market competition, transmission line congestions, and different levels of wind power penetration and volatility.
Michael Georgiadis is Professor of Process Systems Engineering in the Department of Chemical Engineering at Aristotle University of Thessaloniki. He holds an M.Sc. (1995) and PhD (1998) on process systems engineering both from Imperial College London. He is also a Distinguished visiting Professor at Tsinghua University, China and Honorary Senior Research Fellow at Imperial College London.
His research activities include:
- Production Scheduling and planning
- Energy scheduling and energy supply chain optimisation
- Integration of Process Design and Control in energy and production systems
- Biomedical Systems modelling and optimisation
- Dynamic process modelling, simulation and optimisation
He has authored and co-authored over 100 publications in peer-reviewed international journals, 20 chapters in books, participated in over 130 international refereed conferences. He is the co-editor of a 7-volume series on Process Systems Engineering published by WILEY-VCH, co-editor of two volumes on Energy systems engineering published by Sprenger and co-author of a reference book on process and energy integration published by Begel House Inc. His research has been supported by various funding organizations including, EU, and industrial companies.