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A three-tier stackelberg game-based hierarchical optimization framework for integrated electric vehicle battery
Sathish Kannan1, Geetha Anbazhagan2, T Mariprasath3
1Department of Mechanical Engineering, Amity University, Dubai, 345019, United Arab Emirates.
Scientific Reports
|June 27, 2026
Summary
This study introduces a hierarchical optimization framework for electric vehicle (EV) battery swapping stations (BSS) and charging point operators (CPO). The model optimizes costs and grid demand, achieving significant reductions and high service reliability.
Area of Science:
- Energy Systems Engineering
- Operations Research
- Artificial Intelligence
Background:
- Integrated electric vehicle (EV) charging and battery swapping station (BSS) operations require sophisticated energy management strategies to balance grid stability, economic efficiency, and user demands.
- Existing systems often operate with decentralized decision-making, leading to suboptimal performance and increased grid stress.
- The dynamic nature of electricity pricing and EV user behavior necessitates advanced optimization techniques for effective resource allocation.
Purpose of the Study:
- To develop a hierarchical optimization framework for integrated EV battery swapping stations (BSS) and charging point operator (CPO) systems.
- To model and analyze the strategic interactions among grid operators, CPO-BSS operators, and EV users within a multi-stakeholder energy management context.
- To optimize dynamic electricity pricing, charging/swapping schedules, and grid power utilization while ensuring operational and grid constraints are met.
Main Methods:
- A three-tier Stackelberg game-based hierarchical optimization framework was proposed.
- A bi-level mixed-integer linear programming (MILP) formulation was developed, incorporating backward-induction-based Subgame Perfect Nash Equilibrium (SPNE) analysis.
- The framework was validated using real-world EV charging data (ACN-Data corpus) and electricity market prices (Italian GME).
Main Results:
- The proposed framework reduced operational costs by 14.2-26.5% and peak grid demand by 26-28% compared to unoptimized systems.
- Service reliability was maintained at 96.8%, with effective load shifting to low-price periods and enhanced battery utilization.
- The framework captured 15-22% additional value over decentralized strategies, approaching near-optimal centralized social welfare.
Conclusions:
- The hierarchical optimization framework effectively coordinates EV BSS and CPO operations for improved economic and grid performance.
- The approach demonstrates robustness, scalability, and computational tractability for practical implementation in integrated EV charging ecosystems.
- The study provides valuable insights for EV infrastructure planning, grid-aware energy management, and regulatory policy design.
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