Revenue optimization in energy networks involving self-scheduled demand and a smart grid

•.A new bilevel model for a day-ahead energy pricing and load balancing problem.•A new reformulation of the mixed integer bilevel model as a single level one•Two new efficient heuristics to produce good solutions in moderate computation time In this paper, we address a day-ahead pricing and load balancing problem, within an environment involving self-scheduled users whose utilities are optimized via a smart grid. The model is formulated as a mixed integer bilevel program for which we propose a single level reformulation. Next, we design two heuristic algorithms which, by relying on the structure of the problem, provide high quality solutions in moderate computation time.