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Bibliographic Details
Main Authors: Lauinger, Dirk, Vuille, François, Kuhn, Daniel
Format: Preprint
Published: 2020
Subjects:
Online Access:https://arxiv.org/abs/2005.06042
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author Lauinger, Dirk
Vuille, François
Kuhn, Daniel
author_facet Lauinger, Dirk
Vuille, François
Kuhn, Daniel
contents Problem definition: Vehicle-to-grid increases the low utilization rate of privately owned electric vehicles by making their batteries available to electricity grids. We formulate a robust optimization problem that maximizes a vehicle owner's expected profit from selling primary frequency regulation to the grid and guarantees that market commitments are met at all times for all frequency deviation trajectories in a functional uncertainty set that encodes applicable legislation. Faithfully modeling the energy conversion losses during battery charging and discharging renders this optimization problem non-convex. Methodology/results: By exploiting a total unimodularity property of the uncertainty set and an exact linear decision rule reformulation, we prove that this non-convex robust optimization problem with functional uncertainties is equivalent to a tractable linear program. Through extensive numerical experiments using real-world data, we quantify the economic value of vehicle-to-grid and elucidate the financial incentives of vehicle owners, aggregators, equipment manufacturers, and regulators. Managerial implications: We find that the prevailing penalties for non-delivery of promised regulation power are too low to incentivize vehicle owners to honor the delivery guarantees given to grid operators.
format Preprint
id arxiv_https___arxiv_org_abs_2005_06042
institution arXiv
publishDate 2020
record_format arxiv
spellingShingle Reliable Frequency Regulation through Vehicle-to-Grid: Encoding Legislation with Robust Constraints
Lauinger, Dirk
Vuille, François
Kuhn, Daniel
Optimization and Control
Problem definition: Vehicle-to-grid increases the low utilization rate of privately owned electric vehicles by making their batteries available to electricity grids. We formulate a robust optimization problem that maximizes a vehicle owner's expected profit from selling primary frequency regulation to the grid and guarantees that market commitments are met at all times for all frequency deviation trajectories in a functional uncertainty set that encodes applicable legislation. Faithfully modeling the energy conversion losses during battery charging and discharging renders this optimization problem non-convex. Methodology/results: By exploiting a total unimodularity property of the uncertainty set and an exact linear decision rule reformulation, we prove that this non-convex robust optimization problem with functional uncertainties is equivalent to a tractable linear program. Through extensive numerical experiments using real-world data, we quantify the economic value of vehicle-to-grid and elucidate the financial incentives of vehicle owners, aggregators, equipment manufacturers, and regulators. Managerial implications: We find that the prevailing penalties for non-delivery of promised regulation power are too low to incentivize vehicle owners to honor the delivery guarantees given to grid operators.
title Reliable Frequency Regulation through Vehicle-to-Grid: Encoding Legislation with Robust Constraints
topic Optimization and Control
url https://arxiv.org/abs/2005.06042