Optimal Distribution Grid Operation Using DLMP-Based Pricing for Electric Vehicle Charging Infrastructure in a Smart City

Abstract

The use of electric vehicles (EVs) is growing in popularity each year, and as a result, considerable demand increase is expected in the distribution network (DN). Additionally, the uncertainty of EV user behavior is high, making it urgent to understand its impact on the network. Thus, this paper proposes an EV user behavior simulator, which operates in conjunction with an innovative smart distribution locational marginal pricing based on operation/reconfiguration, for the purpose of understanding the impact of the dynamic energy pricing on both sides: the grid and the user. The main goal, besides the distribution system operator (DSO) expenditure minimization, is to understand how and to what extent dynamic pricing of energy for EV charging can positively affect the operation of the smart grid and the EV charging cost. A smart city with a 13-bus DN and a high penetration of distributed energy resources is used to demonstrate the application of the proposed models. The results demonstrate that dynamic energy pricing for EV charging is an efficient approach that increases monetary savings considerably for both the DSO and EV users.