Joint Optimization of Battery Swapping Station Revenue and Electric Vehicle Owners’ Benefits by Introducing Tiered Pricing Incentives

As the penetration of electric vehicles (EVs) increases, how to power them becomes an even challenging problem. Among others, swapping depleted batteries at a battery swapping station (BSS) is a possible solution as a swapping service may be conveniently completed within minutes. This paper proposes a joint optimization framework to maximize the sum of the BSS revenue and the benefits of the EV owners by introducing tiered pricing incentives including rewards and penalties. Depending on the grid state, the BSS encourages the EV owner to swap a battery with an optimal state of charge that can be beneficial to either the BSS or the EV owner (or even both of them). By conducting a case study, this paper shows that the EV owners can be rewarded or penalized and their benefits can be optimized when the tiered pricing scheme is in effect. Moreover, the BSS can utilize the batteries in stock to boost its capability of shaving the peak of the power grid.