Centralized charging control of plug-in electric vehicles and effects on day-ahead electricity market price

Abstract

Global policy targets to reduce greenhouse gas emissions have led to increased interest in plug-in electric vehicles (PEV) and their integration into the electricity network. Existing electricity markets, however, are not well suited to encourage direct participation of flexible demand from small consumers such as PEV owners. The introduction of an aggregator agent with the functions of gathering, aggregating, controlling and representing the energy needs of PEV owners in the electricity market could prove useful in this regard. In this chapter, a mathematical model of PEV aggregator for participation in the day-ahead electricity market is described. The modeling is done by treating each of the individual vehicle batteries as a single large battery. The centralized charging and discharging of this battery is then scheduled based on the traveling needs of the PEV owners determined by an aggregated driving profile and the cumulative electrical energy needs of vehicles over the optimization horizon. Two methods for scheduling PEV demand named as joint scheduling method (JSM) and aggregator scheduling method (ASM) are presented. The two methods are subsequently used to observe the effects of introducing flexible scheduling of PEVs on the day-ahead market price in an IEEE test system and a Nordic test system. Results from the IEEE test system case studies will indicate that the scheduling of PEV energy through direct centralized control at high PEV penetration levels of 50 % or greater could lead to potential lowering of day-ahead market prices as compared to an indirect control method such as the use of fixed period charging. Results from the Nordic test system case study shows that controlled scheduling of PEV demand could lead to only a small increase in day-ahead market price of electricity.