Cost compensation method for PEVs participating in dynamic economic dispatch based on carbon trading mechanism

Qingyun Nie, Lihui Zhang, Zihao Tong, Guyu Dai and Jianxue Chai

Energy, 2022, vol. 239, issue PA

Abstract: Coordinating the charging and discharging behaviors of Plug-in electric vehicles (PEVs) to explore the dynamic economic dispatch (DED) of PEVs in power system has received widespread attention, but how to reasonably compensate for the battery degradation cost resulting from battery depletion during discharge is still in the research gap stage. This study reconstructs DED model and establishes a dynamic mechanism for compensating battery degradation cost with carbon trading revenue. Through 3 case simulations, the rationality of the model and solution algorithm in this study is first verified. Then, the negative impacts of battery degradation cost on dispatch are quantitatively verified from aspects of users' enthusiasm, users’ cost and grid load fluctuation. Finally, by setting 6 carbon prices, it is verified that the carbon trading revenue when carbon trading price is $0.07 and $0.08 achieves full compensation for battery degradation cost and eliminates their negative impacts. The further analysis discusses the possibility of this compensation method becoming a new subsidy policy for electric vehicles. The proposed strategy is an effective way to compensate for battery degradation cost and can significantly increase the motivation of vehicle owners to participate in microgrid dispatch, which will maximize the energy-saving and emission-reduction benefits of PEVs.

Keywords: Plug-in electric vehicles (PEVs); Dynamic economic dispatch (DED); Battery degradation cost; Carbon trading revenue; Cost compensation (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:239:y:2022:i:pa:s0360544221019526

DOI: 10.1016/j.energy.2021.121704

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