Integrated equilibrium model for electrified logistics and power systems

TL;DR

This paper develops an integrated equilibrium model capturing the interactions between electrified logistics and power systems, providing insights for sustainable and efficient operations through a combined optimization framework.

Contribution

It introduces a novel integrated equilibrium model that jointly optimizes logistics routing and power pricing, incorporating a perturbed utility Markov decision process for e-truck behavior.

Findings

Existence of equilibrium proven under mild conditions

Model successfully applied to Hawaii network case study

Provides theoretical insights and practical guidelines for electrified logistics and power systems

Abstract

This paper proposes an integrated equilibrium model to characterize the complex interactions between electrified logistics systems and electric power delivery systems. The model consists of two major players: an electrified logistics operator (ELO) and a power system operator (PSO). The ELO aims to maximize its profit by strategically scheduling and routing its electric delivery vehicles (e-trucks) for deliveries and charging, in response to the locational marginal price (LMP) set by the PSO. The routing, delivery, and charging behaviors of e-trucks are modeled by a perturbed utility Markov decision process (PU-MDP) while their collective operations are optimized to achieve the ELO's objective by designing rewards in the PU-MDP. On the other hand, PSO optimizes the energy price by considering both the spatiotemporal e-truck charging demand and the base electricity load. The equilibrium of the integrated system is formulated as a fixed point, proved to exist under mild assumptions, and solved for a case study on the Hawaii network via Anderson's fixed-point acceleration algorithm. Along with these numerical results, this paper provides both theoretical insights and practical guidelines to achieve sustainable and efficient operations in modern electrified logistics and power systems.