Optimal Bidding Strategy for Electric Vehicle Aggregators in Electricity Markets

This paper determines the optimal bidding strategy of an electric vehicle (EV) aggregator participating in day-ahead energy and regulation markets using stochastic optimization. Key sources of uncertainty affecting the bidding strategy are identified and incorporated in the stochastic optimization model. The aggregator portfolio optimization model should include inevitable deviations between day-ahead cleared bids and actual real-time energy purchases as well as uncertainty for the energy content of regulation signals in order to ensure profit maximization and reliable reserve provision. Energy deviations are characterized as “uninstructed” or “instructed” depending on whether or not the responsibility resides with the aggregator. Price deviations and statistical characteristics of regulation signals are also investigated. Finally, a new battery model is proposed for better approximation of the battery charging characteristic. Test results with an EV aggregator representing one thousand EVs are presented and discussed.

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