Joint Demand Response and Energy Trading for Electric Vehicles in Off-Grid System

Abstract

This paper proposes a joint demand response and energy trading for electric vehicles in an off-grid system. We consider isolated microgrid in a region where, at a given time, some renewable energy generators have superflous energy for sale or to keep in storage facilities, whereas some electric vehicles wish to buy additional energy to meet their deficiency. In our system model, broker lead the market by determining the optimal transaction price by considering a trade-off between commission revenue and power reliability. Buyers and sellers follow the broker's decision by independently submitting a transaction price to the broker. Correspondingly transaction energy is allocated to the buyers in the proportion to their payment, whereas the revenue is allocated to the sellers in proportion to their sales. We investigated the economic benefits of such a joint demand response and energy trading by analyzing its hierarchical decision-making scheme as a single-leader-heterogeneous multi-follower Stackelberg game. With demonstrating an existence of a unique Stackelberg equilibrium, we show that the transaction price in the proposed market model is up to 25.8% cheaper than the existing power market. In addition, we compare the power reliability results with other algorithm to show the suitability of proposed algorithm in the isolated microgrid environment.