Optimizing power generation in the presence of micro-grids

In this paper we consider energy management optimization problems in a future wherein an interaction with micro-grids has to be accounted for. We will model this interaction through a set of contracts between the generation companies owning centralized assets and the micro-grids. We will formulate a general stylized model that can, in principle, account for a variety of management questions such as unit-commitment. The resulting model, a bilevel stochastic mixed integer program will be numerically tackled through a novel preprocessing procedure. As a result the solution for the bilevel problem will be neither ``optimistic'' nor ``pessimistic''. We will numerically evaluate the difference of the resulting solution with the ``optimistic'' solution. We will also demonstrate the efficiency and potential of our methodology on a set of numerical instances.

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