Co-Optimization of Distribution Transformer Aging and Energy Arbitrage Using Electric Vehicles

The advent of electric vehicles (EVs) will bring forth increases in power transmitted over longer periods of time through the distribution power grid. Such an effect will result in accelerated loss-of-life of distribution grid assets including pole-top transformers. As preventive and corrective measures, the charging of the set of EVs connected to a particular pole-top transformer can be centrally managed (e.g., by a distribution system operator or independent aggregator). This paper proposes a centralized model to co-optimize the transformer loss-of-life with the benefits for EVs’ owners on charging/discharging management. The proposed model is compared against a decentralized optimization model in which EVs’ owners optimize their benefits, while ignoring the effect on the transformer. Results show the benefit of the centralized strategy in maintaining the grid assets, while modestly reducing consumers’ arbitrage benefits.

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