Dynamic Horizon-Based Energy Management for PEVs Considering Battery Degradation in Grid-Connected Microgrid Applications

Abstract

The growing integration of plug-in electric vehicles (PEVs) into microgrids presents both challenges and opportunities, particularly through vehicle-to-grid (V2G) services. This paper proposes a dynamic horizon optimization (DHO) framework with adaptive pricing for real-time scheduling of PEVs in a renewable-powered microgrid. The system integrates solar and wind energy, V2G capabilities, and time-of-use (ToU) tariffs. The DHO strategy dynamically adjusts control horizons based on forecasted load, generation, and electricity prices, while considering battery health. A PEV-specific pricing scheme couples ToU tariffs with system marginal prices. Case studies on a microgrid with four heterogeneous EV charging stations show that the proposed method reduces peak load by 23.5%, lowers charging cost by 12.6%, and increases average final SoC by 12.5%. Additionally, it achieves a 6.2% reduction in carbon emissions and enables V2G revenue while considering battery longevity.