Auction-based peer-to-peer energy trading considering echelon utilization of retired electric vehicle second-life batteries

Abstract

Lately, the growing emergence of electric vehicles (EVs) brings problems of retired batteries proliferation. Seeking effective application scenarios targeting echelon utilization of retired EV second-life batteries (EVSLBs) becomes important. This paper proposes an auction-based P2P energy trading approach in a residential community market that incorporates retired EVSLBs utilization. A unified P2P energy trading model is proposed to coordinate the economic layer and the physical layer. In the economic layer, the household energy management system (HEMS) of each agent is in charge of operating and market bidding through optimization models to maximize their net profit. Comprehensive operation models of fresh batteries and retired EVSLBs have been proposed and embedded into HEMS models. The battery life degradation issue is also considered by calculating the cycling cost. The P2P energy trading is conducted by a double-sided auction method with an average pricing market (APM) mechanism, in which the re-bidding process is allowed. In the physical layer, voltage issues and line congestion management are considered. There is a community manager in the P2P market to ensure the economic layer decisions do not violate the constraints in the physical layer. The proposed models are tested on the modified IEEE 33-bus distribution system and the comparison between new batteries and retired EVSLBs in the community market is discussed based on the simulation results. The echelon utilization effectiveness of EVSLBs in residential P2P trading has been verified as well.