Bi-level programming for the strategic energy management of a smart city

Abstract

This paper addresses the emerging need for tools devoted to the strategic energy management of smart cities. We propose a novel decision model that supports the energy manager in governing the smart city while addressing different urban sectors with an integrated and structured energy retrofit planning. A bi-level programming model integrates several decision making units (decision panels), each focusing on the energy optimization of a specific urban subsystem, and a central decision unit. We solve the bi-level decision problem by a game theoretic distributed approach. We apply the developed decision model to the case study of the city of Bari (Italy), where a smart city program has recently been launched.