Incentive Mechanism Design for EVs Participate in Distribution System Voltage Regulation

The increasing load demand and distributed generations make node voltage fluctuation frequently, which may break the security constraints. Instead of using centralized dispatch method, demand response is a good and economical way to support network voltage. Electric vehicles are appropriated for demand response because they disperse in whole systems, and they could charge and discharge through vehicle-to-grid technology to adjust the load demand curve. However, taking part in voltage regulation may disturb the travel plan of vehicles’ owner and depreciate the battery. Therefore, we need design an effective incentive mechanism to compensate those entities for the loss. We analyze the economic benefit of distributed system operator and electric vehicles using the Nash bargaining theory, and divide the whole problem into several subproblems using alternating direction method of multipliers. The case studies show that our method is effective for achieving benefits of operator and electric vehicles.