Better design and operation of infrastructures through bi-level decision making

The need for improvement of the design and operation of infrastructures, which are complex socio-technical systems, has created a demand on investigating if complex optimization methods are applicable in this area. This paper stresses the importance and applicability of multi-level optimization in the world of infrastructures. The advantages of multi-level programming in comparison to an isolated top-down decision problem are shown by an example of a distributed energy system with small micro CHP units. The paper concludes with remarks on the applicability of the presented approach to other infrastructure sectors and with ideas for future research.