Abstract
Realizing the full potential of plug-in electric vehicle (PEVs) in power systems requires the development of business models for PEV owners and electric vehicle aggregators (EVAs). Most business models neglect the significant economic potential of PEV demand response. This paper addresses this challenge by proposing a novel business model to optimize the charging energy of PEVs for maximizing the owners’ profits. The proposed business model aims to overcome the opportunity cost neglect for PEV owners, whose charging energy and charging profiles are optimized with full consideration of the demand curves and market conditions. Lagrangian relaxation technology is used for the relaxation of the constraint of satisfying the charging demand, and as a result, the optimization potential becomes greater. The bidding/offering strategy is formulated as a two-stage stochastic optimization problem, considering the different market prices and initial and target state of energy (SOE) of the PEVs. By case studies and analyses, we demonstrate that the proposed business model can effectively overcome the opportunity cost neglect and increase the PEV owners’ profits. Furthermore, we demonstrate that the proposed business model is incentive-compatible. The PEV owners will be attracted by the proposed business model.
Highlights
As a new type of load, the large-scale penetration of plug-in electric vehicles (PEVs) challenges secure system operation and energy delivery [1,2,3,4]
As the electric vehicle aggregators (EVAs) combines PEVs to participate in the energy and regulation markets, providing peak-shaving and regulation services to the power grid, the EVA optimizes the market bids, charging energy and profiles for PEVs based on the information submitted for profit maximization
Under the proposed business model, since the charging demands do not have to be fully satisfied, the PEV can be charged after time t, and the state of energy (SOE) is within the dotted rhomboid
Summary
As a new type of load, the large-scale penetration of plug-in electric vehicles (PEVs) challenges secure system operation and energy delivery [1,2,3,4]. Reference [20] allows the EVA to optimize the charging energy of PEVs in response to energy prices, without considering the provision of regulation services. Few studies concentrate on the strategy to simultaneously optimize the energy and regulation bids under this new scheme. A novel business model is proposed for the EVA, distinguished by the idea that the PEV owners’ charging demands are considered to be elastic. The optimal bidding/offering strategy is proposed for the EVA in the energy and regulation market, formulated as a two-stage stochastic optimization model. Energy deviation due to regulation service of PEV i in scenario s at period t. Binary variables (1 if PEV i is charged/discharged at period t in scenario s and 0 otherwise).
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