EV Hosting Capacity Enhancement in A Community Microgrid Through Dynamic Price Optimization-Based Demand Response
EV Hosting Capacity Enhancement in A Community Microgrid Through Dynamic Price Optimization-Based Demand Response
However, the ToU fails to reflect the short-term variation in to their amount of energy consumption even if the microgrid
the supply–demand balance as they are set months in advance. has ample generation. Other works focusing on distributed
The dynamic pricing which is set a day or less in advance can dynamic pricing-based DR have also been reported in [15],
effectively match the supply–demand variations. The dynamic [16], and [17]. In [18], DR based on the mechanism of the
pricing is also conducive to the integration of renewables as energy storage system (ESS) sharing between operator and
well as supports wider adoption of EVs [6]. Nevertheless, high users is presented. Bilevel programming was utilized to model
price volatility from the pure form of dynamic pricing makes the interaction between the SO and the users. Both price-
it less attractive for residential customers. Therefore, in this based and incentive-based DRs are modeled for a microgrid
work, we focus on a DR scheme based on effective dynamic in [19]. As part of the price-based DR, tariff of ToU and
pricing to enhance the EV hosting capacity of the microgrid. real-time pricing (RTP) are optimized using particle swarm
optimization (PSO) for maximizing social welfare. In [20], a
bilevel optimization framework is proposed aiming to optimize
B. Related Works the transactive price signals for DR in a distribution network.
In recent years, many studies have focused on the price- In the upper level, the utility company computes the price sig-
based DR models. In [7], dynamic pricing was designed nals for DR aggregators, whereas, in the lower level, energy
for scheduling flexible loads in the distribution networks. consumptions are modified by DR aggregators in response to
The loads were scheduled using centralized optimization via price signals. A price-based residential DR is proposed in [21]
DR aggregators. A centralized DR management system is where reinforcement learning and fuzzy reasoning were uti-
proposed in [8] to maximize the social welfare of the com- lized to implement the scheme. An event-triggered mechanism
munity. In the proposed system, DR aggregators facilitate the is used in [22] for the hybrid energy system operation consid-
interaction between the utility and the end users. Alternating ering price-based DR. The multiagent system and consensus
direction method of multipliers (ADMM), a iteration-based algorithm are used for the proposed DR.
algorithm, is used to solve the DR model. A DR scheme to mit- However, in most of the works except in [7] unified dynamic
igate distribution network congestion caused by EVs and heat price is offered to all users without differentiating among
pumps is proposed in [9]. In this work, the distribution system the type of energy consumers. In reality, the users with
operator (SO) implements dynamic tariffs and daily power- energy-intensive flexible loads such as EVs are most likely
based network tariffs to manage congestion through a central- to pose negative impacts on the electric network; conse-
ized coordinated home energy management system (HEMS). quently, they should pay more than those with fixed/regular
The problem is modeled in a general algebraic modeling energy consumers. This may lead to cross-subsidies among
system (GAMS) and solved by CPLEX. Nevertheless, the the energy-intensive customers with EVs and those with reg-
direct control of EVs by utility considered in this work ular usage. Furthermore, in the pure form of dynamic pricing
may affect end-user preferences. Furthermore, the centralized (such as in [13]), peak rebounding of loads (especially with
optimization-based DR scheme suffers from scalability issues EVs) may still occur without coordination among the users.
with the increasing number of customers. To overcome this
problem, DR models with distributed optimization have been
reported. In these models, scheduling of appliances in the con- C. Contributions of This Article
sumer premises is done locally. In [10], a distributed dynamic Based on the aforementioned discussion, this work introduces
pricing policy (D2P) was proposed for the management of EV an efficient dynamic-pricing-driven DR for a microgrid to
charging within a multimicrogrid environment. The dynamic support high penetration of EVs. An effective dynamic price
pricing is determined based on the supply–demand imbalance, function is proposed based on the supply–demand imbalance
where EVs from home microgrids see lower prices than for- in the system. In the proposed dynamic price function, for
eign microgrids. However, the possibility of simultaneous EV fairness, the users with regular residential consumption remain
charging resulting in peak loads in the microgrids have been unaffected by the price spikes caused by the energy-intensive
ignored. Dynamic pricing-based EV load management in the consumers with EVs at all instants. On the other hand, any price
distribution network is also proposed in [11]. A DR frame- reductions at the instants with ample renewable generation in the
work based on reinforcement learning is proposed in [12] microgrid are enjoyed by all users. In such a scheme, renewable
to optimize the dynamic price for the end users. However, generation is promoted by encouraging users to consume more
the scalability of the framework remains questionable as it at those periods. Each user optimizes their energy profile locally
was tested with only three customers. Real-time dynamic in response to price functions and reports to the SO. The SO
pricing was proposed in [13] to reduce peak loads through assesses the optimized net load and triggers a special DR event
the management of EV charging and discharging. A decen- if there are any network issues. An optimization framework
tralized cloud-based architecture was used for the proposed conforming to the bilevel programming is proposed to realize
scheme. However, the proposed price function only accounts the DR scheme. At the upper level, coordinated dynamic prices
for the price variation above the reference value ignoring any are optimized for a set of users chosen through a fair selection
price decrease during abundant supply from renewable gener- strategy with a view to improve the net load profile of the
ations. In [14], a distributed DR algorithm-based pricing was system. At the lower level, all selected users for DR optimize
proposed to manage plug-in hybrid EVs within the microgrid. their profiles in a distributed fashion. The interaction between
In such a pricing model, the users are charged proportionally the upper and lower level progresses iteratively until all the
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RANA et al.: EV HOSTING CAPACITY ENHANCEMENT IN A COMMUNITY MICROGRID 7433
D. Organization of This Article Fig. 1. Schematic of the system and conceptual framework of the DR model.
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7434 IEEE TRANSACTIONS ON CYBERNETICS, VOL. 53, NO. 12, DECEMBER 2023
t
regular dynamic prices. The price reductions due to high
Etev = Einit
ev
+ s (1 − δ)∇t, (charging)
pev
(11)
renewable generation are enjoyed by all users
s=tplug_in s (1 + δ)∇t, (discharging)
pev
ev
Emin ≤ Etev ≤ Emax
ev
(12)
Dno_EV − St , without EVs
λt = t
(1) Etevdeadline = Etarget .
ev
(13)
Dwith_EV
t − St , with EVs
⎧ no_EV The power balance constraint in the house is enforced by
⎨ Dt , without EVs PVroof_top
Rt = St (2) PMG + Pt = Pbatt + Pev
t + Pt
Hnon_EV
. (14)
⎩ Dt
with_EV
t t
St , with EVs
⎧ Now, the optimization problem for HEO can be written in a
⎨ πb + aλ2t +bλt , if λt > 0, Rt > Rth
compact form as follows:
πt = max {πb − aλ2t + bλt }, π min , if λt < 0, Pren
t > Pth
ren
⎩
πb , else min f (xHEO ) = CH ∀H ∈ N (15)
xHEO
(3) Subject to: (6)−(14).
where a and b are both positive constants and their values are The vector of the decision variables (xHEO ) consists of the
set at the discretion of the SO. active power of the available energy consuming devices as well
One can observe that the above dynamic price function can as the power exchanged with the microgrid for the respective
avoid cross-subsidies among customers by offering different house.
prices for energy-intensive (EV charging) customers and gen-
eral users (users without EV charging). At the same time, it E. Proposed Optimization Framework for DR
facilitates renewable generations by giving price incentives in
certain periods. It is important to note that with Rth = 1, the Each user solves the optimization problem (15) based on
πt turns into the pure form of the dynamic price that varies the price signal (πt ) received from the SO and reports back
with any variation in λt . their energy demand from the MG. The SO performs power-
flow studies of the MG network and activates the DR program
if there are any potential network issues. The DR program
D. Home Energy Optimizer
is based on an optimization framework resembling bilevel
The individual houses schedule their energy usage using programming as discussed in the following.
the HEO to minimize the total cost (CH ). The decision vari- 1) Upper Level Problem: In the upper level problem, the
ables for HEO are the active powers of the energy-consuming SO selects the customers with EV charging demand for DR
devices available in a particular house as well as the power based on a fair selection strategy which will be discussed
exchanged (PMG t ) with the microgrid. The house pays the in the next section. Then, for each of the selected users,
microgrid as per πt when PMG t > 0 and gets paid according dynamic price optimization is performed to minimize the peak-
to feed-in-tariff (FiT) if PMG
t < 0. to-average ratio (PAR) of the system net load that resolves all
The cost of energy for a house is determined by the network issues. The decision variables of this optimization
T problem (Xupper ) are the dynamic prices for the selected users
CH = Ct (4) within their preferred window of EV charging as shown in (16)
t=1 DR
Xupper = πt,1 . . . πt,1
DR
. . . πt,h
DR
. . . πt,h
DR
∀h ∈ Hselected ⊂ N.
Ct = t πt ,
PMG if PMG
t ≥0
(5)
Pt FiT, if PMG
MG < 0. (16)
t
The operation of the battery in any battery-installed house is The price optimization is subjected to the constraint (17) to
governed by the following constraints: guarantee financial gain of the DR participants. It computes
the cost of EV charging with the updated price πt,h DR which
max ≤ Pt
− Pbatt batt
≤ Pbatt
max (6) needs to be less or equal than that of usual price πt . The
t network constraints for statutory voltage limits as well as line
Etbatt = Einit
batt
+ s (1 − δ)∇t,
pbatt (charging)
(7) and transformer loading are also considered as presented in
s (1 + δ)∇t,
pbatt (discharging)
s=1 the following:
batt
Emin ≤ Etbatt ≤ Emax
batt
. (8)
Chev (πt,h
DR
) ≤ Chev (πt ) (17)
For houses with EVs, it is considered that vehicle-to-house pu pu pu
Vmin ≤ ≤ Vmax ∀b ∈ B
Vb,t (18)
(V2H) energy transfer is possible by discharging EV battery to
minimize energy costs. The charging/discharging of the EV is Loadingline
l,t ≤ lmax ∀l ∈ L
Loadingline (19)
performed within the user’s preference defined by plug-in time transformer
Loadingt ≤ Loadingtransformer
max . (20)
(tplug_in ), deadline of charging (tdeadline ) and required energy
ev ). EV charging/discharging is characterized by the Now, the optimization problem for the upper level can be
level (Etarget
represented as follows:
following constraints:
min f (xupper ) = PAR (21)
tplug_in ≤ ∀t ≤ tdeadline (9) xupper
−Pev
max ≤ Pt ≤ Pmax
ev ev
(10) Subject to: (17)−(20).
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RANA et al.: EV HOSTING CAPACITY ENHANCEMENT IN A COMMUNITY MICROGRID 7435
2) Lower Level Problem: The lower level optimization Algorithm 1 Proposed Optimization Framework for Dynamic
problem shown in (22) remains similar to (15) and is solved Price-Based DR
simultaneously for individual users. However, only selected Require: Price (πt ), user preferences for EV charging, num-
user/houses is considered in this case ber of generations (Ng ), population size (Np ) and other EA
parameters
min = f (xHEO ) = Ch ∀h ∈ Hselected ⊂ N (22) Output: Dynamic prices (πt,hDR ) for users participating in DR
xHEO
Subject to: (6)−(14). 1: Get system netload by solving (15). {Initial generation}
2: Perform powerflow with system netload
The formulation of problem (22) is a mixed-integer nonlin- 3: Identify time indexes of network issues (NIt ) if any
ear programming (MINLP) model that contains both continu- 4: NIt = {tVoltage_violation tTranformer_overloading tLine_overloading }
ous and integer decision variables. This nonlinear model can ∀t ∈ T
be converted to an equivalent mixed-integer linear program- 5: if NIt = ∅ then
ming (MILP) model using a linearization approach. In this 6: Set minimum number of users (nDR user ) to call for DR
7: while NIt = ∅ do
research, the MILP approach is chosen for its ability to off-
8: Select users according to Algorithm 2
set the imprecision emanating from linearization with benefits
9: Encode Xupper for selected users as in (16)
of faster computation and global optima as compared to the 10: Set generation count g = 0
MINLP approach. The steps of linearization using standard Initialize (Pinit
11: g ). {Initial set of solutions}
techniques have been presented in the Appendix. Evaluate (Pinit
12: g ) by solving lower level problem of
The outcomes of upper and lower levels are dependent on (22)
each other. In simple words, the dynamic prices from the upper 13: for 1 : Ng do
level affects the energy usage of the users in the lower level 14: Select parent solutions Pg from current population
and responses of the users to price signals in the lower level 15: Generate child Cg from Pg via crossover and
modifies the PAR of the net load in the upper level. mutation
16: Evaluate Cg
17: Sort Tx = Pg ∪ Cg
III. S OLUTION A PPROACH
18: Pg+1 ←− Tx (taking top Np solutions)
In this section, the solution approach is detailed. To solve 19: g = g + 1.
the upper level problem, an evolutionary algorithm (EA) is 20: end for
employed. On the other hand, MILP is used to solve the 21: Perform powerflow with the netload obrained from
lower level problem. The pseudocode of the proposed solu- best solution
tion approach is presented in Algorithm 1. First, the users 22: Update NIt
report their optimized energy profile by solving (15) based 23: Increase nDRuser
on the dynamic price πt . Then, the SO performs power-flow 24: end while
analysis using the resulted net load of the system and stores 25: Broadcast final πt,h DR
the time indexes of any consequent network issues (lines 1–4). 26: else
The network issue indicates any occurrence of statutory bus 27: No additional DR action is needed
voltage limit violation as well as transformer and distribution 28: end if
lines overloading. For any sort of network issue, the proposed
DR scheme is activated and solved (lines 5–25). Otherwise,
Algorithm 2 Strategy for Selecting Users for DR
the scheduled energy profiles based on πt are followed by
respective LCs in the user’s premises. The proposed scheme Require: minimum number of users (nDR user ), time indexes of
comprises of three main steps: 1) selection of the potential network issues (NIt ), optimized energy profile of the houses
users to invite for DR; 2) solution of the upper level problem (Et,H ) with respect to πt , historical DR compliance rate (CRH )
via EA; and 3) distributed solution of lower level problems of the users
(HEOs) using MILP. These steps are discussed succinctly as Output: List of selected users for DR (Hselected )
follows. 1: Enumerate energy consumption (ENIt ,H ) of all users at
the instants of network issues
2: Rank users based on the merit of ENIt ,H and CRH
A. Strategy for Selecting Users for DR 3: List user-id as Fi from non-dominated fronts of ranked
The strategy for selecting users to participate in DR is users (in ascending order of fronts)
presented in Algorithm 2. At the instants where there are 4: Hselected ←− Fi (1 to nDR
user )
network issues, the energy consumption of all users are cal-
culated. Also, an archive of the historical DR compliance rate
is maintained for all users. The compliance rate indicates how
well a user complies with the self-optimized energy profile and compliance rate following the principle of nondominated
reported to the SO while participating in the DR program. sorting (line 2 in Algorithm 2). This ensures the fairness of the
Failure to follow the reported energy profile during actual con- selection process and increases the probability of success rate
sumption decreases the compliance rate of the user. Then, all for acquiring the required DR. Finally, from the top-ranked
the users are ranked based on the merit of energy consumption users, the required numbers of participants are selected for DR.
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7436 IEEE TRANSACTIONS ON CYBERNETICS, VOL. 53, NO. 12, DECEMBER 2023
TABLE I
B. EA for Upper Level Optimization S YSTEM PARAMETERS
An EA is used to optimize the dynamic prices for the users
participating in DR. EA solves the upper level problem (21)
where the solutions are encoded as in (16). In the begin-
ning, a set of initial solutions are randomly generated for the
encoded decision variables; which are then evaluated by solv-
ing lower level problems. From the current population, parent
solutions (Pg ) are selected which are used to generate child
solutions (Cg ) employing crossover and mutation operation. In
this work, the well-known simulated binary crossover (SBX)
and polynomial mutation [25] are considered. Binary tourna-
ment [26] strategy is followed to select parents that increases 114 residential customers distributed throughout the network.
the likelihood of choosing elite parents for child generation. About 30% [28] of the household is considered to have installed
The evaluated child solutions are then combined with the rooftop PV with 9% [29] having battery system that conforms
parent solution and the combined solutions are ranked. For with Australian statistics. The real rooftop PV production data
ranking, the population is divided into feasible and infeasi- of Brisbane, Australia, with a range of PV panel capacities are
ble solutions. The infeasible solutions are ranked based on the taken from [30]. The hourly load data for the households are
amount of constraint violation (CV) with the preference to the taken from [31]. The statutory voltage limits of the electric
lower value of CV. The feasible solutions are ranked based network are set as +10%/−6% as per Australian standard AS
on the minimum value of the objective function. The over- 61000.3.100 [32]. The real EV trial data are extracted from [33]
all ranking process adheres to the feasible first strategy where to model the home EV charging behavior. To make it more
feasible solutions obtain a higher rank above the infeasible realistic, three popular EV models are considered and uni-
ones. The parent solutions for the next generation are selected formly assigned among the houses. These include Nissan Leaf
from the top-ranked solutions. The mechanism of passing best of battery size of 24 and 40 kWh, as well as Tesla Model 3 with
solutions in the subsequent generations facilitates continu- a battery capacity of 50 kWh. Standard type-2 EV chargers for
ous improvement in the objective value, which expedites the homes with charging power 3.6–11 kW are considered. Other
convergence of the algorithm. This process is repeated until parameters of the case study are presented in Table I.
stopping criteria is met or the number of generation reaches
its maximum value.
B. Simulation Settings
All the numerical simulations are performed in the
C. MILP for Lower Level Optimization
MATLAB (R2021a) environment on a computer equipped with
The lower level problem (22) deals with the energy pro- 3.20-GHz Intel Core i7 processor and 16-GB of RAM. The
file optimization of all the selected users for DR in response OpenDSS engine (an electric power distribution system sim-
to the decision variables of the upper level problem. In other ulator) [34] is utilized for power flow of the test microgrid
words, the solutions of the upper level problem are evalu- network using MATLAB COM interfacing. The EA is config-
ated by solving lower level problems of individual houses in ured with the parameter values of 30, 50, 1, and 0.1 for Np , Ng ,
a distributed manner. The problem of cost minimization for crossover probability, and mutation probability, respectively.
individual users’ energy consumption is formulated using the The MILP formulation of the lower level problem is solved
MILP approach which can be solved optimally using available using the Gurobi9.12 solver with the default settings.
solvers.
C. Benchmarks
IV. N UMERICAL E XPERIMENTS The performance of the proposed user coordinated dynamic
In this section, the proposed DR strategy is tested on a price-based DR (DPDR-C) policy is compared with other
residential microgrid adopted from a real low-voltage (LV) pricing policies, such as D2P [10], decentralized energy man-
distribution network. agement with dynamic pricing (DP-DEM) [13], and ToU
pricing [5]. Although ToU pricing is not fully dynamic, it has
A. System Data been considered due to its wide adoption in electricity pricing
markets. In addition, dynamic pricing without user coordina-
For the test microgrid network, the original IEEE European
tion (DPDR-NC) is considered to study the impacts of user
LV test feeder [27] is reduced in dimension spatially and
coordinated pricing and uncoordinated pricing on the success
electrically while keeping intact the system parameters. The
of the DR program.
test microgrid is connected to the main utility grid through
an 11/0.416-kV distribution transformer at the substation. The
microgrid also contains four distributed generators, namely: D. Results and Discussions
1) PV; 2) wind-turbine (WT); 3) fuel-cell (FC); and 4) micro- To evaluate the performance of the proposed dynamic
turbine (MT), with the maximum generation capacity of 40, price-based DR policy, following three simulation cases are
35, 30, and 30 kW, respectively. The microgrid consists of considered.
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RANA et al.: EV HOSTING CAPACITY ENHANCEMENT IN A COMMUNITY MICROGRID 7437
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7438 IEEE TRANSACTIONS ON CYBERNETICS, VOL. 53, NO. 12, DECEMBER 2023
Fig. 3. Dynamic price for users (a) with EV charging demand (b) without (a)
EV charging demand.
(b)
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RANA et al.: EV HOSTING CAPACITY ENHANCEMENT IN A COMMUNITY MICROGRID 7439
(a) similar to D2P and DP-DEM. In the case of ToU, a larger off-
peak duration allows 79% EV penetration. With the proposed
DPDR-C, hosting capacity can be reached to 100% which ben-
efits the SO by delaying investment on network upgrades. The
(b) improved EV hosting capacity with the proposed DR frame-
work is realized by the reduced PAR of the net load compared
to other schemes as shown in Fig. 7(a). This enhancement
(c) of hosting capacity corroborates the efficacy of the proposed
approach.
b) Economic performance: Economic gain of the SO and
the customers are the main factors determining the success of
Fig. 6. For 60% EV penetration: (a) user’s EV charging profile with DPDR- the DR programs. Alongside the improved network operation,
NC, (b) dynamic price with DRDR-C, and (c) user’s EV charging profile with the SO is interested in maximizing revenue from the enhanced
DPDR-C.
EV hosting capacity. On the other hand, the customers are
TABLE II inherently greedy, that is, they want to minimize energy bills
I MPACTS OF D IFFERENT P RICING S CHEME ON THE EV H OSTING without affecting their comforts. The revenue gathered by the
C APACITY OF THE N ETWORK AND R EVENUE OF THE M ICROGRID
SO for different level of EV penetration is presented in the
last column of Table II. It can be seen that the revenue of SO
is increased with the proposed DR model in use due to the
improved EV hosting capacity. However, the revenue does not
increase at the same rate as of EV penetration. This is due to
the increased cost of DR service incurred through incentivized
prices for the DR participants. The more the number of cus-
tomers are allowed to participate in DR, the higher will be
the cost of DR service. The increased number of DR partic-
ipants in turn will facilitate peak power management. In our
model, the SO has the freedom to decide the tradeoff between
peak modification and cost incurred through DR services by
4) Performance Evaluation: The DR programs aid the SO varying the maximum number of participants to be included in
to maintain the reliable operation of the power network. At DR program. This directly affects the peak power modification
the same time, users’ participation in DR solely depends on achieved and cost of DR service.
the incentives/benefits they receive. Therefore, from both SO As discussed earlier, the customers can only be motivated to
and customer perspectives, the performance of the proposed participate in DR if they receive appropriate financial incen-
DR policy is evaluated against other schemes in this section. tives. In the proposed model, all the DR participants enjoy
The convergence analysis of the proposed algorithm is also the savings in energy bills. The average energy bills of the
presented. DR participants with different EV penetration are presented in
a) Performance in terms of electric network operation: Fig. 7(b). It shows that the proposed DR model offers lower
Unmanaged high penetration of EVs poses significant secu- energy bill for the DR participants compared to other dynamic
rity issues to the electric network. From the perspective of the pricing schemes. This indicates that the proposed approach
SO, alongside system stability, higher EV hosting capacity of can offer appropriate incentives to the DR participants. These
the network is also important from a revenue standpoint. On findings confirm the efficacy of the proposed DR model
the other hand, the improved EV hosting capacity and sta- in creating win-win situation for both the SO and the end
ble operation stem from the reduced PAR of the net load. users.
The impacts of different DR policies on the operating condi- c) Performance of the algorithm: To ensure the conver-
tions of the test network and consequent EV hosting capacity gence of the algorithm, elitism strategy is employed in the
are presented in Table II. It can be seen that the EV host- underlying EA. In this strategy, the best solution is carried
ing capacity is limited to 34% for the baseline profile as well forward as members of the next generation. The convergence
as using D2P and DP-DEM. For both D2P and DP-DEM, the of the algorithm is assessed by calculating the change in objec-
continuously varying price function depending on the demand– tive function (value of PAR for net load) between consecutive
supply imbalance forces the users to shift their EV charging iterations and the algorithm is assumed to be converged if
to the end of the scheduling window. This results in simul- the objective value remains unchanged for 15 iterations. The
taneous charging of many EVs causing network issues that convergence plot of the proposed algorithm shown in Fig. 8
result in limited hosting capacity. In contrast, the proposed reflects the improvement of the objective function in each
dynamic price function prevents oscillations in price signals iteration. In addition, a statistical analysis was carried out
up to a certain power threshold. This results in EV charg- with the objective values obtained from 11 independent trials
ing distributed over the scheduling horizon giving a hosting of the algorithm. The standard deviation of objective values
capacity of 59% with DPDR-NC. It is worth mentioning that was found to be very small (0.0097) which further indicates
DPDR-NC with Rth = 1 varies continuously that performs consistency in performance.
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7440 IEEE TRANSACTIONS ON CYBERNETICS, VOL. 53, NO. 12, DECEMBER 2023
A PPENDIX
(b) Major equations governing the MILP formulation are given
as follows:
Fig. 7. Comparison of PAR and energy bills for the users. (a) PAR of net T
load. (b) Average cost of energy for the houses participated in DR. Ct = t πt xt − Pt yt FiT
PMG DR MG
(23)
t=1
xt + yt ≤ 1 (24)
T
Etbatt = Einit
batt
+ pbatt
s (1 − δ)cbatt
t − (1 + δ)dtbatt ) t (25)
t=1
cbatt
t + dtbatt ≤1 (26)
T
Etev = Einit
ev
+ s (1 − δ)ct − (1 + δ)dt ) t
pev ev ev
(27)
t=1
t + dt ≤ 1
cev ev
(28)
xt , yt , cbatt
t , dt , ct , dt ∈ {0, 1}
batt ev ev
(29)
where PMG , pbatt , and pev are the continuous variables between
Fig. 8. For 60% EV penetration convergence plot of the algorithm. zero and their respective maximum value. The associated
binary variables are presented by xt , yt , cbatt
t , dt , ct , and
batt ev
ev
dt . The power import and export of the house from/to the
V. C ONCLUSION
In this work, a DR scheme based on dynamic pricing was microgrid are controlled by xt and yt , respectively. Charging
proposed for a microgrid to aid a higher penetration of EVs. and discharging of the household battery system and EV
First, an efficient dynamic price function was designed that battery are regulated by corresponding ct and dt , respectively.
can prevent cross-subsidies among customers. Second, a DR However, in (23), (25), and (27) the product of continuous
framework (i.e., DPDR-C) based on a two-level optimization and binary variables introduces nonlinearity in the problem.
formulation was proposed to be initiated by SO when deemed This can be resolved by introducing additional variables for
necessary. the products [35]. These additional variables for (23) can be
Numerical experiments showed that the designed dynamic defined as follows:
price function can effectively capture the load-generation z1t = PMG
t xt (30)
imbalance and promotes renewable generation while motivat-
z2t = PMG
t yt (31)
ing users to shift their peak loads. It can extend EV hosting
capacity to 59% compared to the other pure form of dynamic where z1t
and z2t
correspond to the power import and export
pricing, such as D2P and DP-DEM. The proposed DPDR-C power, respectively. These additional variables brings forth the
further enhances the EV hosting capacity to 100% at an following linearization constraints [35]:
expense of financial incentives provided to the DR partici-
pants. The improved EV hosting capacity results from the z1t,n ≥ 0 (32)
reduced PAR of the netload with the proposed DR model. The z1t ≤ PMG
t,max xt (33)
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RANA et al.: EV HOSTING CAPACITY ENHANCEMENT IN A COMMUNITY MICROGRID 7441
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[14] Z. Fan, “A distributed demand response algorithm and its application to University of Engineering and Technology, Rajshahi,
PHEV charging in smart grids,” IEEE Trans. Smart Grid, vol. 3, no. 3, Bangladesh, in 2011, and the M.Sc. degree in elec-
pp. 1280–1290, Sep. 2012. trical engineering from the King Fahd University
[15] L. Jia and L. Tong, “Dynamic pricing and distributed energy manage- of Petroleum and Minerals, Dhahran, Saudi Arabia,
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pp. 1128–1136, Mar. 2016. with the School of Engineering and Information
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7442 IEEE TRANSACTIONS ON CYBERNETICS, VOL. 53, NO. 12, DECEMBER 2023
Forhad Zaman received the Ph.D. degree from the Ruhul Sarker (Member, IEEE) received the Ph.D.
University of New South Wales (UNSW), Canberra, degree from Dalhousie University, Halifax, NS,
ACT, Australia, in 2017. Canada, in 1992.
He worked as a Research Fellow with UNSW He is currently a Professor with the School of
from 2017 to 2019, where he is currently an Engineering and Information Technology, and the
Adjunct Lecturer with the School of Engineering Director of the Faculty Postgraduate Research,
and Information Technology. His research interests University of New South Wales, Canberra,
include power system operation and control, active ACT, Australia. He has authored a book titled
bidding strategy in the electricity market, evolu- Optimization Modeling: A Practical Approach.
tionary algorithms, multiobjective optimization, han- His current research interests include evolutionary
dling real-life uncertainty, and game theory. optimization and applied operations research.
Dr. Sarker is a member of INFORMS.
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