VCG-Based Auction for Incentivized Energy Trading in Electric Vehicle Enabled Microgrids

Abstract

Under vehicle-to-grid (V2G) concept, electric vehicles (EVs) can be deployed to meet additional energy demand of critical load (CL) in a microgrid. In this article, an incentivized energy trading approach is introduced to study the interaction between EVs and CL. EV mobility and battery degradation are studied to ensure they do not deter EV participation. Bidder satisfaction is introduced which allows EV owners to enforce their energy trading conditions. EV-CL association and discharging scheduling are considered in a two-phase model. In the first phase, EV-CL association is modeled as a single auction to determine the winning bids and corresponding payments. Successful bidders are determined by solving a mixed integer non-linear programming (MINLP) problem, while Vickery-Clarke-Groves (VCG) payment rule is applied to pay the auction winners. In the second phase, EV discharging scheduling determines the operating cost and discharging power of associated EVs at each time slot. Simulation results show that the proposed approach achieves comparable performance with reference schemes and guarantees bidder satisfaction. Theoretical analysis on economic properties of truthfulness and individual rationality are verified as well.