A Profit Sharing Mechanism for Coordinated Power Traffic System

Abstract: During the scheduling process, the traffic network operator (TNO) and the distribution network operator (DNO) act noncooperatively. Under the TNO management, the distribution of charging loads may exacerbate the local supply demand imbalance in the power distribution network (PDN), which negatively impacts the economic operation of the PDN. This paper proposes a profitsharing mechanism based on the principle of incentive compatibility for coordinating the traffic network (TN) and the PDN to minimize the operation cost of PDN. Under this mechanism, the scheduling process of the power traffic system is divided into two stages. At the prescheduling stage, the TNO allocates traffic flow and charging loads without considering the operation of the PDN, after which the DNO schedules and obtains the original cost. At the rescheduling stage, the DNO shares part of benefits of the optimal operation to the TNO to redispatch the EV charging to obtain a more effective charging plan, thus minimize the overall cost of PDN. Then, a bilevel model is developed to simulate the operation of the power traffic system with the proposed sharing scheme and identify the best sharing ratio. Finally, numerical results demonstrate that the PDN can achieve the minimum total cost and simultaneously the TN can also benefit from the proposed profit sharing mechanism.