Optimal Decision-Making Strategy of an Electric Vehicle Aggregator in Short-Term Electricity Markets

Homa Rashidizadeh-Kermani, Hamid Reza Najafi, Amjad Anvari-Moghaddam and Josep M. Guerrero
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Homa Rashidizadeh-Kermani: Department of Electrical & Computer Engineering, University of Birjand, Birjand 9856, Iran
Hamid Reza Najafi: Department of Electrical & Computer Engineering, University of Birjand, Birjand 9856, Iran
Amjad Anvari-Moghaddam: Department of Energy Technology, Aalborg University, Aalborg East 9220, Denmark
Josep M. Guerrero: Department of Energy Technology, Aalborg University, Aalborg East 9220, Denmark

Energies, 2018, vol. 11, issue 9, 1-20

Abstract: This paper proposes the problem of decision making of an electric vehicle (EV) aggregator in a competitive market in the presence of different uncertain resources. In the proposed model, a bi-level problem is formulated where, in the upper-level, the objective of the aggregator is to maximize its expected profit through its interactions and, in the lower-level, the EV owners minimize their payments. Therefore, the objectives of the upper and the lower-level are contrary. To solve the obtained nonlinear bi-level program, Karush-Kuhn-Tucker (KKT) optimality conditions and strong duality are applied to transform the initial problem into a linear single-level problem. Moreover, to deal with various uncertainties, including market prices, EVs charge/discharge demands and the prices offered by rivals, a risk measurement tool is incorporated into the problem. The proposed model is finally applied to a test system and its effectiveness is evaluated. Simulation results show that the proposed approach has the potential to offer significant benefits to the aggregator and EV owners for better decision-making in an uncertain environment. During different situations, it is observed that with increasing risk-aversion factor, as the aggregator tries to hedge against volatilities, its purchases from day-ahead and negative balancing markets decreases significantly. However, the participation of EV aggregator in the positive balancing market increases accordingly to make more profit.

Keywords: aggregator; competitive trading floor; electric vehicle (EV); energy management; risk measurement (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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