EV Hosting Capacity Enhancement in a Community Microgrid Through Dynamic Price Optimization-Based Demand Response

Community microgrids, as an emerging technology, offer resiliency in operation for smart grids. Microgrids are seeing an increased penetration of eco-friendly electric vehicles (EVs) in recent years. However, the uncontrolled charging of EVs can easily overwhelm such electric networks. In this work, we propose an efficient demand response (DR) scheme based on dynamic pricing to enhance the capacity of the microgrid to securely host a large number of EVs. A hierarchical two-level optimization framework is introduced to realize the DR scheme. At the upper level, the dynamic prices for the participating users in DR are optimized while at the lower level, each user optimizes its energy consumption based on the price signal from the upper level. An evolutionary algorithm and a mixed-integer linear programming model is employed to solve the upper and lower level problems, respectively. Energy scheduling problems of the users are solved in a distributed manner which adds to the scalability of the approach. The proposed DR scheme is tested on a microgrid system adopted from the IEEE European low-voltage distribution network. Numerical experiments confirm the effectiveness of the proposed DR scheme compared to the benchmark pricing policies from the literature.