Coordination of Power and Transportation Networks: An Inverse optimization Based Pricing Approach

The growing prevalence of electric vehicles (EVs) is enhancing the coupling of power distribution network (PDN) and transportation network (TN). Based on the inverse optimization (IO) approach, this paper proposes a holistic pricing paradigm to manage the power-traffic flows towards the least-cost social optimum state with minimum extra user charges. First, a coordinated operation model is established which assigns the traffic flows and schedules the power generation within the grid operation and EV routing and charging constraints. Second, a novel decentralized bi-layer decomposition algorithm is designed to tackle the computational complexities. Third, based on the coordinated operation results, an IO-based minimum charge pricing method is proposed, which minimizes the charging fees, plug-in fees and road tolls for EVs. Finally, real-world urban network-based case studies verify the effectiveness of the model and algorithm and underline the merits and necessity of the pricing method.