Abstract
Emissions from the internal combustion engine (ICE) vehicles are one of the primary cause of air pollution and climate change. In recent years, electric vehicles (EVs) are becoming a more sensible alternative to these ICE vehicles. With the recent breakthroughs in battery technology and large-scale production, EVs are becoming cheaper. In the near future, mass deployment of EVs will put severe stress on the existing electrical power system (EPS). Optimal scheduling of EVs can reduce the stress on the existing network while accommodating large-scale integration of EVs. The integration of these EVs can provide several economic benefits to different players in the energy market. In this paper, recent works related to the integration of EV with EPS are classified based on their relevance to different players in the electricity market. This classification refers to four players: generation company (GENCO), distribution system operator (DSO), EV aggregator, and end user. Further classification is done based on scheduling or charging strategies used for the grid integration of EVs. This paper provides a comprehensive review of technical challenges in the grid integration of EVs along with their solution based on optimal scheduling and controlled charging strategies.
ELECTRIC vehicles (EVs) with their zero-tailpipe emission have attracted much interest in recent years as an eco-friendly and cost-effective alternative to traditional internal combustion engine (ICE) vehicles. Though ICE vehicles outperform EVs in terms of price and range availability of fuel, EVs has many advantages over ICE such as more efficiency, less noise, no emission, and low maintenance. An electric vehicle has an electrical motor powered by an energy source. In the case of battery electric vehicles (BEVs), the source is a battery, and in the case of plug-in hybrid electric vehicles (PHEVs), it is a combination of ICE and battery. Most of the EVs have the capability of regenerative braking, which can reduce external energy consumption by 20% in urban areas [
Vehicles are parked 95% of the time, and are parked at home 80% of the time, mostly during night hours [
Numerous review papers have been presented with grid integration and scheduling strategies for EV in recent years. Most of these review papers have focused on the impact of unidirectional [
This paper classifies the existing works on grid integration and charging scheduling strategies of EV based on the economic benefits for different entities in electrical power system (EPS). The study mainly focuses on generation companies (GENCOs), distribution system operator (DSO), EV aggregator, and end user, since they bare most of the economic stakes. This classification of EV integration strategies for different players in the electricity market is shown in

Fig. 1 Grid integration of EV for economic benefits.
The remainder contributions of the paper are listed below.
1) Discussion of different grid integration and scheduling strategies for PEV in conventional power system and smart grid.
2) A comprehensive review of integration strategies of EV for economic benefits for GENCOs, DSO, aggregator, and end user.
3) Classification of integration and scheduling techniques based on their performance objective.
4) Exploration of open issues and future research areas for grid integration of EV to achieve economic benefits.
The rest of this paper is organized as follows. Section II describes the economic benefits of GENCO. Section III deals with the economic benefits for DSO. Section IV describes revenue maximization techniques for the aggregator. Section V describes cost minimization for the end user. Section VI explores open issues and future research challenges. Finally, Section VII concludes this paper.
In recent years, with the reduction in the cost of RES and distributed energy resources (DERs), conventional centralized generation is shifting towards distributed generation. GENCOs maximize their profits by integrating these cheaper RESs, optimally scheduling units of existing thermal plants and economically dispatching power. In the smart grid, DSM strategies are introduced to manage the load demand rather than power generation. These DSM strategies can be implemented to minimize the load during peak hours or shift the load to the off-peak hours [
EV integration strategies related to GENCOs are tabulated in
About 50% of world electricity generation is by coal and nuclear plant [
Combined optimal scheduling of thermal power plants, RESs, and EVs can reduce the generation by the thermal plant. It can also minimize the running cost and emission from the thermal plants.
References [
Spinning reserve is generation capacity synchronized to the system equipped to respond immediately to serve the load in case of a system contingency [
EVs can provide an operation reserve to optimize the day-ahead spinning reserve requirement (SRR). SSR reschedules the unit such that thermal generators can be turned off when EVs act as a spinning reserve. This optimization minimizes the scheduled spinning reserve and generation operation cost, and improves the reliability of EPS [
DSM is a modification in the consumer demand profile while considering their convenience.
The individual strategy of each EV can be updated with respect to the average charging strategy of the infinite EV fleet [
Most of the DSM strategies are decentralized and require less computation time and implementation cost. The decentralized nature and shorter computation time have enabled the service providers to implement these strategies in real time.
All generation units and loads are not connected to the same bus; hence, economic dispatch may result in unacceptable flows or voltages in the network. An OPF can solve this problem and minimize the total generation cost. Both equality and inequality constraints are considered in OPF.
EV scheduling problem for charging can be converted into the OPF problem to obtain a joint OPF-charging optimization [
In recent years, the penetration of RESs in the power system has increased rapidly and become the fastest developing renewable energy technology [
An autonomous distributed V2G control (ADC) scheme can provide a distributed spinning reserve for unexpected frequency fluctuations caused by the RESs. V2G control provides distributed spinning reserve while smart charging control satisfies the charging requirements of EV owners [
In a multiagent system, each EV acts according to the dynamic conditions in the surrounding environment while integrating the RESs. While forming a solution, this system considers static and a more accurate dynamic behaviour to minimize the cost of the power supply [
VPP with its ability to deliver peak power in a short time with higher efficiency and more flexibility can replace conventional power plants. Reference [
Most research works on economic benefits for GENCOS are related to the integration of RESs and UC of existing generators. With the increasing penetration of RES, future EV grid integration and economic strategies should focus on minimizing the disadvantages of RES integration. The V2G capability of EV can be used to provide ancillary services such as spinning reserve and frequency regulation in order to stabilize the grid and minimize the intermittency due to RESs.
A DSO is responsible for the operation and maintenance of the distribution system to ensure the long-term capability of the system to meet reasonable demands for the distribution of electricity [
EV integration strategies related to DSO are tabulated in
The losses in the distribution system increase when a system operates nearer to its limits. The increase in these power losses incurs substantial financial losses for DSO.
An optimal scheduling problem is formulated in [
In this subsection, peak shaving and peak shifting strategies of DSM used to reduce the stress on the distribution system have been reviewed.
EV scheduling algorithm can be implemented using an energy consumption scheduling (ECS) device to balance the load among residential customers sharing a mutual energy source. ECS reduces the peak-to-average ratio (PAR) as well as the total energy cost in the system [
A power monitoring and control system (PMCS) can be used with V2G and vehicle-to-vehicle (V2V) charging capability for peak shifting and demand response during high-demand periods. It limits the disincentive due to uncontrolled charging of large-scale EV penetration [
Significant research on DSM strategies for integration of EVs [
Maximum power flow in the power grid without considering distribution system constraints can lead to voltage fluctuation and overloading of the equipment. Hence, strategies with maximum energy transfer to the consumer should be implemented while satisfying the constraints of distribution system.
Load factor (LF), load variance (LV), and distribution system losses are co-related. Maximizing LF and minimizing LV can reduce losses if the power consumed by EV along with baseload and total current are both below the optimal value. Different algorithms are formulated based on this assumption: minimizing losses, maximizing LF, and minimizing LV [
Most of the EV charging and scheduling strategies reviewed in this subsection provide short-term solutions. As the penetration of EVs increases, the implementation of proposed strategies either violates the customers’ comfort levels or network constraints. Thus, it becomes necessary to modify the existing network for large-scale integration of EVs. In recent years, DGs are being integrated at the distribution level. It creates a unique opportunity for DSO to generate energy locally with DERs and store it in ESS and EVs to minimize the cost of energy purchased from the transmission network.
EV charging at public places such as large parking complex, charging stations, office, and apartment parking can be clustered through an aggregator. It acts as a centralized system operator who controls the charging and scheduling of each EV. The aggregator can also use several intelligent control units to implement decentralized charging of EV. A decentralized approach can provide high computation efficiency with similar results as centralized charging [
EV integration strategies implemented by an EV aggregator are tabulated in
Ancillary services such as spinning reserve and frequency regulation are necessary for grid reliability and voltage and frequency stability. Compared with spinning reserve, regulation services are more frequently used [
References [
The profit of aggregator from participating in competitive energy and regulation reserve markets can be maximized with optimal bidding strategy [
Most of the existing aggregator models control the spinning reserve and frequency regulation service. In recent years, tremendous development has been made in regards to the capability of EV in providing ancillary services such as reactive power, voltage control, and black start capability. The use of EVs in providing reactive power compensation has been explored in [107]-[109], while [110]-[112] describe strategies to restore the EPS without black-start generators. Even though the implementation of these strategies are beneficial to utility, aggregator and EV users, their economic viability is yet to be explored.
EV aggregator is responsible for optimal charging of large fleet of EV. While satisfying the charging demand of each EV, an aggregator can buy energy from the power grid at a lower price and sell it to the customer at a higher price. It can also maximize the revenue by optimizing the charging of each EV and adding a fixed mark up over energy price consumed by that EV.
The scheduling of EVs and ESS can minimize additional cost caused by load mismatch of the aggregator in the real-time market. Aggregator schedules EVs with the aid of ESS while considering practical day-ahead and real-time electricity market trading. This strategy improves the aggregator’s revenue by 80.1% and a further increase of 7.8% with the aid of ESS [
Scheduling strategies in [
With reliable information on optimum penetration and EV mobility, an aggregator can purchase the bulk energy at a cheaper rate in a day-ahead market and implement ESS to minimize the energy purchasing at peak hours. Thus, the aggregator and EV owner can achieve economic benefits at optimum penetration of EV through the aggregator.
End users are mainly the EV owners who purchase power from DSO directly. They charge their vehicles at home through household electrical outlets with Level 1 or 2 chargers mostly during the night time when they are parked. EV charging strategies can be classified into two types based on the flow of power: charging cost minimization and total cost minimization. In the first case, the power flow is unidirectional, i.e., EV is only charged from the power grid. Thus, only the charging cost is considered while formulating a strategy. In the second case, the flow of power is bidirectional, i.e., G2V and V2G, where EV is charged from the power grid as well as discharged to the power grid. V2G capability creates a unique opportunity for end users to minimize the charging cost by charging their EVs during off-peak hours (i.e., low tariff) and discharging during peak hour (i.e., high tariff).
EV integration strategies implemented by EV end users are tabulated in
EV owners charge their vehicles at home during the night time or at the workplace during the day time. In the unidirectional power flow, EVs are only charged from the power grid and the charging cost is due to the energy purchased from the power grid by end users.
In a regulated market, EV charging can be controlled in response to TOU electricity price. Single EV system avoids peak demands and chooses to charge intelligently during the valley time, thus reducing charging costs. Multi-EV optimized charging shifts the mass of peak load to valley load and flattens the load curve [
Total cost is the difference between charging cost and discharging cost. Based on the tariff set by the utility and the overall power demand, EV owners can schedule their EVs to charge during off-peak hours and discharge during peak hours using the V2G capability. It provides the end-users incentives in their charging cost while mitigating the overloads in the network.
The charging/discharging of EVs can be implemented in centralized (globally optimal scheduling) or decentralized (locally optimal scheduling) manner. Globally optimal scheduling is impractical since it requires future information of EV mobility. In a more realistic locally optimal scheduling, an LC instructs each local EV to charge or discharge its battery with the optimal charging power based on information from the central controller [
Various strategies reviewed in previous sections are multi-objective. Though their primary objectives are different, their implementation provides the added benefit of charging cost minimization for end users. The strategies proposed in [
In this section, some of the significant research challenges and technical hurdles for the implementation of grid integration strategies to achieve economic benefits are explored.
The analysis of the recent works related to grid integration of electric vehicles indicates that the majority of the strategies use V2G capability of the EVs to achieve economic benefits. Most of the research work focuses on the technical aspects of V2G rather than the commercial implementation with the existing systems. The commercialization of V2G requires active participation of the EV manufacturers, utility and end users. Most of the EVs in the market use unidirectional chargers only to charge their vehicles. Though many strategies are proposed for V2G implementation, very few successful studies exist for commercialization of V2G system. Bidirectional chargers and sophisticated power electronics are the main challenges for the implementation of the V2G system. The switching between charging and discharging can degrade the battery of EV; however, this issue has already been addressed by researchers [
Aggregator and utility require constant information regarding power grid conditions, EV mobility and customer preferences for optimal control of EVs. Most of the PEVs will be equipped with different communication channels like Zigbee, power line carrier, cellular data, WiMax. Nevertheless, one-way power and communication in the conventional power grid will make it challenging to integrate EVs. The communication in the smart grid between EV and different players increases the risk of a security breach. It can violate the confidentiality and privacy of the system and can pose a serious threat to EV owners. There is also a possibility of end users falsifying the information related to ancillary services and charging demand for the added profits.
Large-scale integration of EVs requires the improvement in the current power infrastructure, mainly in the generation and distribution sectors. To accommodate the increasing demand from the EVs, the present generation capacity needs to be increased while the distribution network needs to be upgraded to allow the additional power flow. In addition to existing charging infrastructure, the introduction of the fast-charging stations and battery swapping stations will allow faster charging of the EVs while reducing the charging time.
Currently, EV users do not receive any economic incentives to control EV charging time, power demand and provision of V2G power. Even though researchers have proposed different strategies beneficial to different players in the energy market, government oversight is needed for the successful implementation of these strategies. Government policies can accelerate the adaption of EVs in the existing system while proposing a framework to provide economic incentives to different players. The utilities also need to set forth the V2G tariff, incentive policies for ancillary services and battery degradation due to V2G.
Large-scale penetration of EVs can create a gap between supply and demand. The increase in the power demand from the EVs has to be satisfied by additional generation units, and current network infrastructure has to be updated to lessen the congestion. However, optimal scheduling or charging of EVs can alleviate these issues while providing economic incentives to different entities in EPS. Optimal scheduling of EVs can reduce the generation cost by the integration of RESs and optimizing UC of existing units. The stress on the distribution system can be minimized by implementing loss minimization and DSM strategies. Aggregators and end users can maximize their profits by optimizing the charging of EVs and providing power grid support services. Since most of the proposed strategies are multi-objective, their implementation can provide economic benefits to more than one player.
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