Optimal Participation of PEV charging stations integrated with Smart Buildings in the Wholesale Energy and Reserve Markets

Abstract

The emerging nano-Grids (n-Grids), which we designated as commercial or residential buildings hosting electric vehicle charging stations, a fixed battery storage and photovoltaic panels integrated with the building's load, all being interfaced to the grid through a bidirectional energy exchange framework may provide substantial advantages to the power grid and n-Grid owner. The n-Grids, because of their substantial energy storage capacity and ramp rate, have an added capability, if aggregated can provide ancillary services, reserve in particular, for the wholesale market. In this paper, the optimal framework for their aggregated participation in the day-ahead energy and reserve markets is developed. In the developed bi-level optimization, at a centralized level the aggregator attempts to maximize its profitability by offering optimal energy and reserve prices to the n-Grids. At the decentralized level, the n-Grid optimizer, based on the prices offered by its aggregator, while assuring its own flexibility and dependability, runs the scheduling of its resources to maximize their profit from energy and reserve product procurement. The simulation results demonstrate that the n-Grids are able to provide significant flexibility and resilience to the system by leveraging their high ramp and storage capacity, and as a consequence, provide financial profit to their owners.