A Multi-Agent, Laxity-Based Aggregation Strategy for Cost-Effective Electric Vehicle Charging and Local Transformer Overload Prevention

The rapid electrification of transportation, driven by stringent decarbonization targets and supportive policies, poses significant challenges for distribution system operators (DSOs). When numerous electric vehicles (EVs) charge concurrently, local transformers risk overloading—a problem that current tariff-based strategies do not adequately address. This paper introduces an aggregator-based coordination mechanism that shifts EV charging from congested to underutilized periods using a rule-based scheduling algorithm. Unlike conventional methods that depend on complex real-time pricing signals or optimization-heavy solutions, the aggregator approach uses a simple yet effective “laxity” measure to prioritize charging flexibility. To assess technical and economic viability, a multi-agent simulation was developed to replicate residential user behavior and DSO constraints under the use of a 400 kVA low-voltage transformer. The results indicate that overloads are completely eliminated with minimal inconvenience to users, whose increased charging costs are offset by the aggregator at an annual total of under DKK 6000—significantly lower than the cost of infrastructure reinforcement. This study contributes by (i) quantifying the compensation needed to prevent large-scale overloads, (ii) presenting a replicable, computationally feasible, rule-based aggregator model for DSOs, and (iii) comparing aggregator solutions to costly transformer upgrades, underscoring the aggregator’s role as a viable tool for future distribution systems.