Publication:
Sustainable Electric Vehicle Charging using Adaptive Pricing

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dc.contributor.authorKetter, Wolfgang
dc.contributor.authorCollins, John
dc.contributor.authorZhdanov, Dmitry
dc.contributor.authorValogianni, Konstantina
dc.contributor.rorhttps://ror.org/02jjdwm75
dc.date.accessioned2024-07-02T16:11:30Z
dc.date.available2024-07-02T16:11:30Z
dc.date.issued2020-03-13
dc.description.abstractA transition to electric vehicles (EVs) is widely assumed to be an important step along the road to environmental sustainability. However, large-scale adoption of EVs may put electricity grids under critical strain, since peaks in electricity demand are likely to increase radically. Efforts to manage demand peaks through pricing schemes may create new peaks at low-price periods, if large numbers of EV owners use smart charging to benefit from low prices. This effect is expected to be amplified when EV owners adopt smart decision support to assist them with optimal charging decisions. Therefore, energy policymakers are interested in advanced pricing schemes that can smooth demand or induce demand that comes as close as possible to a desired profile. We show, through simulations calibrated with real-world data, that current approaches to electricity pricing are limited in their ability to induce desired demand profiles. To address this challenge, we present adaptive pricing, a method to learn from EV owner reactions to prices and adjust announced prices accordingly. Our method draws on the Green Information Systems principles and can assist grid operators in ensuring the reliable operation of the grid. We evaluate our results in simulations, where we find that adaptive pricing outperforms current electricity pricing schemes, yielding results close to the theoretically optimal ones. We test our method in inducing both flat and extremely volatile demand profiles, and we see that in both cases it manages to induce EV charging close to the ideal scenario under perfect information.
dc.identifier.citationValogianni, K., Ketter, W., Collins, J., & Zhdanov, D. (2020). Sustainable electric vehicle charging using adaptive pricing. Production and Operations Management, 29(6), 1550-1572.
dc.identifier.doihttps://doi.org/10.1111/poms.13179
dc.identifier.issn1937-5956
dc.identifier.urihttps://hdl.handle.net/20.500.14417/2899
dc.issue.number6
dc.journal.titleProduction and Operations Management Society
dc.language.isoeng
dc.page.final1572
dc.page.initial1550
dc.page.total1550-1572
dc.publisherWiley
dc.relation.departmentInformation Systems & Technology
dc.relation.entityIE University
dc.relation.schoolIE Business School
dc.rightsmetadata only access
dc.rights.accessRightsinfo:eu-repo/semantics/restrictedAccess
dc.subject.keywordadaptive pricing
dc.subject.keywordelectric vehicles
dc.subject.keywordelectricity markets
dc.subject.keywordsmart grid
dc.subject.keywordSustainability
dc.subject.otheradaptive pricing;electric vehicles;electricity markets;smart grid;sustainability
dc.titleSustainable Electric Vehicle Charging using Adaptive Pricing
dc.typeinfo:eu-repo/semantics/article
dc.version.typeinfo:eu-repo/semantics/acceptedVersion
dc.volume.number29
dspace.entity.typePublication
relation.isAuthorOfPublication176a05d2-7442-4e6e-a6da-dcf2f9063787
relation.isAuthorOfPublication176a05d2-7442-4e6e-a6da-dcf2f9063787
relation.isAuthorOfPublication.latestForDiscovery176a05d2-7442-4e6e-a6da-dcf2f9063787
relation.isAuthorOfPublication.latestForDiscovery176a05d2-7442-4e6e-a6da-dcf2f9063787
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