Optimization of Aggregate Capacity of PEVs for Frequency Regulation Service in Day-Ahead Market

An aggregator can coordinate plug-in electric vehicles (PEVs) to provide frequency regulation service to an independent system operator (ISO). The aggregator can participate in the electricity markets of ISOs which provide economic incentives for PEV frequency regulation service. While the ISOs typically use forward market [e.g., day-ahead market (DAM)] to trade frequency regulation service, the available regulation capacity of an aggregator is subject to the random arrival and departure of the PEVs. In the DAM, the aggregator submits a bid to indicate its available capacity on the next day. This motivates us to study the problem of how an aggregator determines its bid in the DAM, given the uncertainty of the available regulation capacity of the PEVs. The DAM is used to trade the frequency regulation capacity in California ISO (CAISO) and New York ISO (NYISO). We consider two types of DAMs based on the market rules of CAISO and NYISO. For the first type, the exact amount of regulation capacity submitted in the DAM needs to be fulfilled on the next day. For the second type, a market participant can settle a shortage of capacity by paying a penalty to the ISO. In both cases, the aggregator can participate in the real-time market to sell extra capacity on the next day. We formulate the problem for determining the bid using stochastic programming. As PEVs have uncertain arrival and departure times, our problem formulation incorporates risk management using the conditional value at risk. Efficient algorithms are proposed for solving the formulated problem. PEV charging data collected in Vancouver, BC, Canada, is used in our simulations. We compare the profit of the aggregator when it participates in the markets of CAISO and NYISO. Our simulation results show that the uncertainty of the PEVs' available capacity has less effect on the profit and financial risk as the number of PEVs increases.