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A Regulation Policy of EV Discharging Price for Demand Scheduling

The widespread penetration of electric vehicles (EVs) will cause an increase in energy demand. To achieve an effective demand response approach, the participation of EV users is a crucial factor. Nevertheless, the discharging price found in the literature is generally set in accordance with the spot electricity price. A fair pricing strategy is thus desirable to motivate EV users to regulate their charging behavior for less bill payment, and at the same time to achieve load regulation as well as benefit for power companies. The charging and discharging prices should be cohesively equilibrated to achieve the task. This paper presents a new V2G (Vehicle-to-Grid) pricing policy by incorporating the system load condition, maximum power limit, and price rate for user load in a fair manner. The price setting follows a hierarchical optimization procedure between the operator and end users with the aim to maximize operator's profit and balance end users’ bill and comfort level. The optimization for the operator is achieved via genetic algorithm whereas the energy management of each user is decomposed as a single power optimization problem. Simulation results have confirmed the benefit of liberating the discharging price from the user load tariff and have verified the effectiveness of the proposed method.