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A novel strong duality-based reformulation for trilevel infrastructure models in energy systems development

Author

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  • Olli Herrala
  • Steven A. Gabriel
  • Fabricio Oliveira
  • Tommi Ekholm

Abstract

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.

Suggested Citation

  • Olli Herrala & Steven A. Gabriel & Fabricio Oliveira & Tommi Ekholm, 2025. "A novel strong duality-based reformulation for trilevel infrastructure models in energy systems development," Journal of the Operational Research Society, Taylor & Francis Journals, vol. 76(3), pages 438-453, March.
    • Handle: RePEc:taf:tjorxx:v:76:y:2025:i:3:p:438-453
    DOI: 10.1080/01605682.2024.2365807
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