Incentivizing Electric Vehicle Charging Flexibility for Demand Response via Price Menu Approach

This study considers a Charging Station Operator (CSO) that participates in Demand Response (DR) services and, in return, receives remuneration from the Electric Vehicle Aggregator (EVA). To participate in DR, the CSO requires flexibility from Electric Vehicle (EV) users, which typically concerns charging deadlines or energy demands. In this model, EV users are flexible with their charging deadlines but have fixed energy demands. To incentivize this flexibility, the CSO offers EV users a menu of charging options, where each option specifies a charging deadline and its corresponding charging price. The price menu design problem is formulated as a Mixed Integer Quadratic Programming problem, where the CSO aims to maximize its profit and the user selects the option from the menu that maximizes its utility. The numerical results provide valuable insights into the optimal price menu design and the ideal remuneration from the EVA to the CSO.