Optimal coordination and scheduling of demand response via monetary incentives

Without demand-side management, an increase in the number of electric vehicles (EVs) could result in overloads on distribution feeders. Aggregators could optimally manage the charging/discharging of the EVs, to not only maximize the consumers' welfare in response to real-time prices and accommodate their needs for transportation, but also to keep the distribution network within its operating limits. This paper proposes a decentralized framework in which the aggregator seeks to maximize its profits while the consumers minimize their costs in response to time-varying prices, and additional incentives provided to mitigate potential overloads in the distribution system. Test results show that a large penetration of EV penetration can then be managed without violating the capacity of the distribution network.