A Two-Stage Optimal Bidding Algorithm for Incentive-based Aggregation of Electric Vehicles in Workplace Parking Lots

Abstract: This paper proposes an incentive-based aggregator for electric vehicles (EVs) in workplace parking lots to participate in the energy and regulation markets. With the implementation of seasonal Autoregressive Integrated Moving Average (ARIMA) model to predict the market information, a Day-Ahead (DA) planning model coordinated with the EV's responses to the incentive is formulated to determine the days to activate the aggregation program and the optimal incentives that are broadcasted to the EV owners in the first stage. Given the determined incentives and EV's responses, an real-time (RT) optimal bidding algorithm complying with EVs' energy demand in the second stage is designed to maximize the aggregator's profits in the markets. The proposed models are tested using the data collected from PJM's energy and regulation markets. The results show the incentive-based aggregator can benefit both the EV owners and the aggregator from the credits obtained from the markets. Meanwhile, the results also indicate the proposed optimal bidding algorithm is capable of handling the uncertainty of regulation signals and following the signals with high precision.