Contract Design for V2G Smart Energy Trading

TL;DR

This paper proposes a VCG-based contract mechanism for V2G energy trading to improve market efficiency and reduce carbon emissions, aiding the transition to a net zero energy system.

Contribution

It introduces a novel VCG-based contract design for V2G energy trading, enhancing market efficiency and sustainability.

Findings

The mechanism increases trading efficiency.

It reduces carbon emissions.

It supports sustainable energy market development.

Abstract

The transition to a net zero energy system necessitates development in a number of directions including developing advanced electricity trading markets. Due to electricity markets being responsible for a large portion of carbon emissions, improving the electricity markets' method for determining energy transactions could have a significant impact on carbon reductions and thus facilitate this transition. V2X technology can be applied to regulate different energy markets, and thus reduce costs and carbon emissions by using the batteries in electric vehicles to store energy during off-peak hours and export it during peak hours. We develop a novel contract based on the VCG-mechanism, for exporting and importing electricity effectively, and show how this mechanism can raise efficiency, facilitate the development of a sustainable and efficient electricity market, and bring us nearer to our Net Zero Goal.