Optimal bidding and coordinating strategy for maximal marginal revenue due to V2G operation: Distribution system operator as a key player in China's uncertain electricity markets

Abstract

This paper proposes a novel management scheme, namely, the distribution system operator (DSO) as a key player participating in China's electricity markets owing to its high value-added capability, high customer loyalty and robust risk resistance. In light of this, this paper discusses the maximal marginal revenue for DSO in uncertain electricity markets with vehicle-to-grid operation incorporated. Initially, considering different benefit expectations of electric vehicles (EVs) owners, DSO could provide preferential contracts, including the discount price contract (DPC) and revenue-sharing contract (RSC), in exchange for the management rights of EVs. Then, the stochastic optimization model considering the spatiotemporal uncertainties of EVs and electricity markets is built up, and the optimal bidding and coordinating strategy are proposed to maximize the marginal revenue of DSO. Comprehensive case studies are conducted in a 31-node distribution system of a university campus under the electricity markets in Guangdong, China. Results reveal that different distribution of EVs parking lots has a significant impact on the profit of DSO, and the revenue for DSO is 13,477 yuan more than that for EVA by scheduling 1400 EVs' charging/discharging behavior properly. Additionally, the DSO with RSCs is exposed to 25% less market volatility risk than that with DPCs.