Optimization of a Macroscopic Energy System through Energy Hub Modeling and Game Theory

This work developed a Game Theory approach to optimize macroscopic energy systems, focusing on the impact of competition. The model, based on the Energy Hub concept, is applied to a large-scale case study using real parameters of the Mexican national electricity system (SEN). Its primary novelty is the application of a single-leader-multifollower Stackelberg game to model the system’s actual public-private hierarchy, which accounts for the individual interests of market participants with state-owned plants (CFE) as the leader and private/independent producers as followers. The resulting mathematical problem with equilibrium constraints (MPEC) is solved through a reformulation as a computationally tractable mixed-integer linear problem (MILP) via a KKT-SOS1 methodology. The model reveals a fundamental dispatch shift when moving from a global optimization to this competitive structure. Although the competitive scenario changes the total system cost, it forces a strategic substitution: combined-cycle generation is replaced by public and private clean energy (solar, wind) and thermoelectric plants, especially during peak demand hours.