Economics at your fingertips  

Coordination and payment mechanisms for electric vehicle aggregators

Perez-Diaz, Alvaro, Enrico Gerding and Frank McGroarty

Applied Energy, 2018, vol. 212, issue C, 185-195

Abstract: Motivated by the high electric vehicle (EV) penetration percentages foreseen for the near future, this paper studies the participation of large fleets of EVs in electricity day-ahead markets. Specifically, we consider a scenario where a number of independent and self-interested EV aggregators participate in the day-ahead market to purchase energy to satisfy their clients’ driving needs. In this scenario, independent bidding can drive prices up unnecessarily, resulting in increased electricity costs for all participants. Inter-aggregator cooperation can mitigate this by producing coordinated bids. However, this is challenging due to the self-interested nature of the aggregators, who may try to manipulate the system in order to obtain personal benefit. In order to overcome this issue, we employ techniques from mechanism design to develop a coordination mechanism which incentivises self-interested EV aggregators to report their energy requirements truthfully to a third-party coordinator. This coordinator is then able to employ a day-ahead bidding algorithm to optimise the global bids on their behalf, extending the benefits of smart bidding to groups of competing EV aggregators. Importantly, the proposed coordination mechanism is straightforward to implement and does not require any additional infrastructure. To ensure scalability and computational tractability, a novel price-maker day-ahead bidding algorithm is proposed, which is formulated in terms of simple energy requirement constraints. The coordination mechanism substantially reduces bidding costs, as shown in a case study which uses real market and driver data from the Iberian Peninsula.

Keywords: Electric vehicle charging; Electric vehicle aggregation; Inter-aggregator coordination; Mechanism design; Vickrey-Clarke-Groves; Day-ahead electricity market (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.elsevier. ... 405891/bibliographic

Access Statistics for this article

Applied Energy is currently edited by J. Yan

More articles in Applied Energy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-04-27
Handle: RePEc:eee:appene:v:212:y:2018:i:c:p:185-195