Strategic Pricing of Electric Vehicle Charging Service Providers in Coupled Power-Transportation Networks

Abstract

Electric vehicles (EVs) are developing at a rapid pace. The EV charging station (EVCS) plays an indispensable role in supplying EV charging demand and promoting the transportation electrification. This work proposes a pricing method to maximize the profit of EVCS owners, charging service providers. First, the tri-level pricing framework is established where EVCSs set charging prices at the upper level, EVs make route and charging options at the middle level, and the electricity price is cleared in power distribution network at the lower level. Second, the singlelevel optimal pricing model is established with traffic flow assigned, power generation scheduled and electricity price explicitly contained via KKT conditions. The proposed model considers the impact of EVCS configuration on traffic assignment and pricing strategy. The operation risk brought by uncertainties is managed via Conditional value at risk. Third, a decomposition solution algorithm is proposed, which tackles the computational burdens and overcomes the infeasibility of existing algorithms. Finally, the real-world urban network-based case studies verify the effectiveness and merits of the proposed method.