A multi-layer market for vehicle-to-grid energy trading in the smart grid

TL;DR

This paper introduces a multi-layer market model for vehicle-to-grid energy trading, utilizing a strategy-proof double auction mechanism at the macro level and optimizing aggregator utilities at the micro level, enhancing PHEV benefits.

Contribution

It presents a novel multi-layer market framework for vehicle-to-grid energy trading, integrating macro and micro mechanisms with proven strategy-proofness and convergence properties.

Findings

The double auction mechanism is strategy-proof and converges asymptotically.

Simulation shows increased utility for PHEVs under the proposed model.

The model adapts to different supply and demand elasticity scenarios.

Abstract

In this work, we propose a multi-layer market for vehicle-to-grid energy trading. In the macro layer, we consider a double auction mechanism, under which the utility company act as an auctioneer and energy buyers and sellers interact. This double auction mechanism is strategy-proof and converges asymptotically. In the micro layer, the aggregators, which are the sellers in the macro layer, are paid with commissions to sell the energy of plug-in hybrid electric vehicles (PHEVs) and to maximize their utilities. We analyze the interaction between the macro and micro layers and study some simplified cases. Depending on the elasticity of supply and demand, the utility is analyzed under different scenarios. Simulation results show that our approach can significantly increase the utility of PHEVs.