Decentralized participation of electric vehicles in network-constrained market operation

This paper builds on previous work by the authors in developing a novel market mechanism enabling decentralized market participation of flexibly-charging electric vehicles (EV) and addresses the challenge of incorporating the effect of the transmission network on market operation. The formulation of the proposed Lagrangian Relaxation (LR)-based mechanism is extended to account for network capacity constraints. A LR heuristic method introducing location-specific restrictions on flexible EV demand response is developed for producing high quality market clearing solutions without extensive computational requirements. Case studies on a representative model of the UK transmission network demonstrate and quantify the conditions and the extent to which the location-specific LR heuristic improves the solution with respect to previous approaches and the economic value of flexible EV market participation in relieving network congestion.