Energy Management in Smart Grids with Electric Vehicles based on Pricing

This paper presents an energy management system for smart grids with electric vehicles based on pricing. Units are modeled as price-elastic units, price-inelastic units and electric vehicles. Prices are negotiated by the price-elastic units and the electric vehicles such that the total cost of all units is minimized while meeting power, energy and mobility constraints. The negotiation is coordinated by a price coordinator which ensures power balance while regarding predictions for the price-inelastic units. Cornerstone of the method is a dual decomposition using the fast gradient method. The method uses distributed computation, ensures privacy of the units and is plug and play capable with respect to the units. Communication and computation can be reduced by constructing a primal feasible suboptimal solution. Simulations for a smart grid of a company with a conventional generation unit, a photovoltaic generation unit and electric vehicles illustrate the effectiveness of the energy management system.