Optimal Electric Vehicle Charging and Discharging Strategies Under DER Compensation Programs: Preprint

The adoption of electric vehicles (EVs) is becoming increasingly popular because of environmental concerns, the greater availability of models, and increased cost-competitiveness with gas vehicles. Because EVs have both charging and discharging capabilities, they provide great potential to help electric utilities with grid operation. When the grid demand is high, EVs can discharge to the grid to reduce the peak load, and vice versa; therefore, electric utilities have designed different policies to encourage EV charging station operators to charge or discharge at certain time periods. The New York State Public Service Commission established the Value of Distributed Energy Resources (VDER), or the Value Stack, to compensate for energy created by distributed energy resources, including EVs. This paper presents an optimization-based approach to identify the "golden hours" and "golden spots," i.e., the effective time periods and geographic locations for EV charging station operators to charge or discharge under the VDER program that can provide them the highest benefit. The proposed methodology can be applied to other compensation mechanisms and distribution systems as well. By working with industry partner NineDot Energy, realistic charging station information is used in this study, and the proposed approach is tested on a distribution feeder. The results from this study can help electric utilities and EV charging station operators determine the ideal charging/discharging time and the ideal locations for the charging station(s) in their distribution systems to achieve maximized benefit.