Optimal Participation of an Electric Vehicle Aggregator in Day-Ahead Energy and Reserve Markets

Sarker, Mushfiqur R.; Dvorkin, Yury; Ortega‐Vazquez, Miguel A.

doi:10.1109/tpwrs.2015.2496551

Cited by 204 publications

(128 citation statements)

References 23 publications

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“…Lemma 2. Assume that the aggregator engages in bilateral negotiations with each SU and that all players are risk neutral 5 . The aggregator and SUs split the maximum aggregate profit given by:…”

Section: Profit Split Via Nash Bargainingmentioning

confidence: 99%

“…INTRODUCTIONT HE adoption of household-level energy storage systems is expected to increase rapidly in the coming years (residential energy storage grew by 405% in 2015) and become a significant share of the total U.S. energy storage deployment [1]. These storage units (SUs) have the potential of selling services to the power grid [2] but may not be able to directly do so for two main reasons: i) their individual capacities are smaller than the required minimum [3], [4]; and ii) the large number of SUs would make their management difficult even if they are allowed to participate [5]. Therefore, aggregators act as mediators between SUs and the power system [6].…”

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confidence: 99%

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Participation of an Energy Storage Aggregator in Electricity Markets

Contreras-Ocaña

Ortega‐Vazquez

Zhang

2018

2018 IEEE Power &Amp; Energy Society General Meeting (PESGM)

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An important function of aggregators is to enable the participation of small energy storage units in electricity markets. This paper studies two generally overlooked aspects related to aggregators of energy storage: i) the relationship between the aggregator and its constituent storage units and ii) the aggregator's effect on system welfare.Regarding i), we show that short-term outcomes can be Pareto-inefficient: all players could be better-off. In practice, however, aggregators and storage units are likely to engage in long rather than short-term relationships. Using Nash Bargaining Theory, we show that aggregators and storage units are likely to cooperate in the long-term. A rigorous understanding of the aggregator-storage unit relationship is fundamental to model the aggregator's participation in the market. Regarding ii), we first show that a profit-seeking energy storage aggregator is always beneficial to the system when compared to a system without storage, regardless of size or market power the aggregator may have. However, due to market power, a monopolist aggregator may act in a socially suboptimal manner. We propose a pricing scheme designed to mitigate market power abuse by the aggregator. This pricing scheme has several important characteristics:its formulation requires no private information, it incentivizes a rational aggregator to behave in a socially optimal manner, and allows for regulation of the aggregator's profit. Index TermsEnergy storage, aggregators, market power, bargaining. I. INTRODUCTIONT HE adoption of household-level energy storage systems is expected to increase rapidly in the coming years (residential energy storage grew by 405% in 2015) and become a significant share of the total U.S. energy storage deployment [1]. These storage units (SUs) have the potential of selling services to the power grid [2] but may not be able to directly do so for two main reasons: i) their individual capacities are smaller than the required minimum [3], [4]; and ii) the large number of SUs would make their management difficult even if they are allowed to participate [5]. Therefore, aggregators act as mediators between SUs and the power system [6]. A number of studies regarding the operation and market strategies of aggregators have been conducted. For instance, the authors of [5], [7] study the aggregation of a fleet of electric vehicles while [8] studies the coordination The authors are with the Department of Electrical Engineering at the University of Washington. Emails: {jcontrer, maov, zhangbao}@uw.edu.

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Section: Profit Split Via Nash Bargainingmentioning

confidence: 99%

mentioning

confidence: 99%

Participation of an Energy Storage Aggregator in Electricity Markets

Contreras-Ocaña

Ortega‐Vazquez

Zhang

2018

2018 IEEE Power &Amp; Energy Society General Meeting (PESGM)

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“…An even more interesting hypothesis would be that our proposed system is more profitable than approaches using V2G and selling the PV generation to the grid, but unfortunately such a direct comparison is not possible, since the other proposed approaches neglect some consideration that would have been essential for the comparison. References [20][21][22] focus on V2G without PV. Reference [23] ignores battery degradations costs, and [20] has an unrealistically small and unjustified figure of 1 ¢/kWh.…”

Section: Related Research In Electric Vehicle Battery Exploitationmentioning

confidence: 99%

Internet of Energy Approach for Sustainable Use of Electric Vehicles as Energy Storage of Prosumer Buildings

2018

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Vehicle-to-building (V2B) technology permits bypassing the power grid in order to supply power to a building from electric vehicle (EV) batteries in the parking lot. This paper investigates the hypothesis stating that the increasing number of EVs on our roads can be also beneficial for making buildings sustainably greener on account of using V2B technology in conjunction with local photovoltaic (PV) generation. It is assumed that there is no local battery storage other than EVs and that the EV batteries are fully available for driving, so that the EVs batteries must be at the intended state of charge at the departure time announced by the EV driver. Our goal is to exploit the potential of the EV batteries capacity as much as possible in order to permit a large area of solar panels, so that even on sunny days all PV power can be used to supply the building needs or the EV charging at the parking lot. A system architecture and collaboration protocols that account for uncertainties in EV behaviour are proposed. The proposed approach is proven in simulation covering one year period for three locations in different climatic regions of the US, resulting in the electricity bill reductions of 15.8%, 9.1% and 4.9% for California, New Jersey and Alaska, respectively. These results are compared to state-of-the-art research in combining V2B with PV or wind power generation. It is concluded that the achieved electricity bill reductions are superior to the state-of-the-art, because previous work is based on problem formulations that exploit only a part of the potential EV battery capacity.

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“…A market actor that controls the charging rate and time of a portfolio of EVs could acquire nancial gain from energy arbitrage [8,10]. The energy required to charge (and/or discharge) the EVs can be traded through bids in day-ahead and/or regulation market at a minimum cost [21]. Numerous research studies, European (e.g., [1], and national projects (e.g., [2]) focus on trading the required energy to charge EVs taking into account di erent parameters.…”

Section: Introductionmentioning

confidence: 99%

“…For instance, the proposed scheduling technique in [11] o ers less than 200kW in less than an hour in the regulation power market where the minimum bid is 10MW, in full hours [8]. The bidding strategies proposed in [5] and the high power uctuations of the scheduling outputs in [7] and in [21], would require single hour independent bids [3] that might not ful ll the energy requirements. The conservative bidding approach for the bidding strategy proposed in [27] covers less than 50% of the energy needed to charge the EVs.…”

Section: Introductionmentioning

confidence: 99%

Day-ahead Trading of Aggregated Energy Flexibility

Valsomatzis

Pedersen

Abelló

2018

Proceedings of the Ninth International Conference on Future Energy Systems

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Flexibility of small loads, in particular from Electric Vehicles (EVs), has recently attracted a lot of interest due to their possibility of participating in the energy market and the new commercial potentials. Di erent from existing work, the aggregation techniques proposed in this paper produce exible aggregated loads from EVs taking into account technical market requirements. They can be further transformed into the so-called exible orders and be traded in the day-ahead market by a Balance Responsible Party (BRP). As a result, the BRP can achieve at least 20% cost reduction on average in energy purchase compared to traditional charging based on 2017 real electricity prices from the Danish electricity market.

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Optimal Participation of an Electric Vehicle Aggregator in Day-Ahead Energy and Reserve Markets

Cited by 204 publications

References 23 publications

Participation of an Energy Storage Aggregator in Electricity Markets

Participation of an Energy Storage Aggregator in Electricity Markets

Internet of Energy Approach for Sustainable Use of Electric Vehicles as Energy Storage of Prosumer Buildings

Day-ahead Trading of Aggregated Energy Flexibility

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