Modeling Piecewise Quadratic Objective Function

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The generator offers are piecewise linear marginal cost function. Motivated by the electricity market example

Problem Description

Piecewise Linear Function

Piecewise Quadratic Function

General Convex Piecewise Function

Solutions

Solution 1: introducing binary variables

Solution 2: define black-box type objective functions

Solution 3: formulate epigraph with additional variables

A simple example

Example

\[f(x) = \begin{cases} x^2,& \text{if}\,0 \le x < 1 \\ 10 x^2 - 9,& \text{if}\, 1 \le x \end{cases}\]

YALMIP code

More Thoughts

Limitations

Thanks Dr. Johan Löfberg for suggestions.