An incentivized auction based group-selling approach for demand response management in V2G systems

Abstract

Vehicle-to-grid (V2G) system with efficient demand response management (DRM) is critical to solve the problem of supplying electricity by utilizing surplus electricity available at electric vehicles (EVs). An incentivized DRM approach is studied to reduce the system cost and maintain the system stability. EVs are motivated with dynamic pricing determined by the group-selling-based auction. In the proposed approach, a number of aggregators sit on the first-level auction responsible to communicate with a group of EVs. EVs as bidders consider quality of energy (QoE) requirements, and report interests and decisions on the bidding process coordinated by the associated aggregator. Auction winners are determined based on the bidding prices and the amount of electricity sold by the EV bidders. We investigate the impact of the proposed mechanism on the system performance with maximum feedback power constraints of aggregators. The designed mechanism is proven to have essential economic properties. Simulation results indicate that the proposed mechanism can reduce the system cost and offer EVs significant incentives to participate in the V2G DRM operation.