Joint Shaping and Altering the Demand Profile by Residential Plug-in Electric Vehicles for Forward and Spot Markets in Smart Grids

TL;DR

This paper presents a decentralized algorithm for managing electric vehicle charging and discharging to optimize electricity procurement costs in smart grids, achieving significant cost savings and demand flexibility.

Contribution

It introduces a novel joint demand shaping and altering algorithm for V2G-enabled PEVs that is scalable, privacy-preserving, and effective in reducing procurement costs in two-settlement markets.

Findings

Up to 28% cost savings for retailers.

Effective demand profile management in high renewable integration scenarios.

Enhanced market competitiveness and lower consumer costs.

Abstract

Plug-in electric vehicles (PEVs) can significantly increase the elasticity of residential electricity demand. This elasticity can be employed to shape the daily aggregated electricity demand profile of a system comprised of a large number of residential PEVs' users sharing one electricity retailer or an aggregator. In this paper, we propose a joint demand shaping and altering algorithm for managing vehicle-to-grid (V2G) enabled PEVs' electricity assignments (charging and discharging) in order to diminish the overall electricity procurement costs for a retailer bidding to two-settlement electricity markets, i.e., a day-ahead (DA) and a real-time (RT) market. This approach is decentralized, scalable, fast converging and does not violate users' privacy. Our simulations' results demonstrate significant overall cost savings (up to 28\%) for a retailer bidding to an operational electricity market by using our proposed algorithm. This becomes even more salient when the power system is integrating a large number of intermittent energy resources wherein RT demand altering is crucial due to more likely contingencies and hence more RT price fluctuations and even more so-called \textit{black swan events}. Lower electricity procurement cost for a retailer finally makes it able to offer better deals to customers and expand its market capacity. This implies that customers can enjoy lower electricity bills as well.