Distributional Locational Marginal Pricing Based Optimization for Electric Vehicle Charging Management

Abstract: Electric power generation, transmission, and distribution systems are attracting a large amount of interest from researchers with the development of the smart grid technologies. A smart grid aims at effective control and conditioning of the distribution of electricity. Pricing signal based distribution system are seen as one of the novel ways to achieve control in a smart grid. In our work, we propose to use a pricing signal modeled after the locational marginal price in the transmission system to locally provide price data to the users. The formulation and implementation of the distributional locational marginal price (DLMP) are achieved to develop a fair pricing model. The work is further practically implemented to a grid with Electric Vehicles in addition to the conventional load. The increasing popularity of EVs because of their ability to reduce greenhouse gas (GHG) emissions will pose a greater challenge in terms of demand on the power grid. We propose to use the DLMP modeling to alleviate congestion in the power grid and develop an optimal charging schedule for EVs.