Centralized and Distributed Optimization for Vehicle-to-Grid Applications in Frequency Regulation

Abstract

This paper proposes centralized and distributed optimization models for V2G applications to provide frequency regulation in power systems and the electricity market. Battery degradation and dynamic EV usages such as EV driving period, driving distance, and multiple charging/discharging locations are modeled. The centralized V2G problem is formulated into the linear programming (LP) model by introducing two sets of slack variables. However, the centralized model encounters limitations such as privacy concerns, high complexity, and central failure issues. To overcome these limitations, the distributed optimal V2G model is developed by decomposing the centralized model into subproblems using the augmented Lagrangian relaxation (ALR) method. The alternating direction method of multipliers (ADMM) is used to solve the distributed V2G model iteratively. The proposed models are evaluated using real data from the Independent Electricity System Operator (IESO) Ontario, Canada. Simulation results show that the proposed models can aggregate EVs for frequency regulation; meanwhile, the EV owners can obtain monetary rewards. The simulation also shows that including battery degradation and dynamic EV usage increases the model accuracy. By using the proposed approaches, the high cost and the low efficiency power generation units for frequency regulation can be compensated or partially replaced by EVs, which will reduce the generation cost and greenhouse gas emissions.