Design of Optimization Strategy and Response Incentive Mechanisms of Energy and Frequency Ancillary Services Market With Participation of Electric Vehicle Aggregators

To fully exploit the response potential of electric vehicles and improve the profitability of aggregators, a two-layer optimal scheduling model is developed with electric vehicle aggregators as the main entity. In this model, aggregators coordinate electric vehicle users to participate in the auxiliary service of frequency modulation and peak regulation. The electric vehicle aggregator in the upper level model aims to maximize their revenue and allocates bidding capacity for different auxiliary services by considering the maximum schedulable potential of users and incorporating demand response information provided by electric power companies. While in the lower model, the electric vehicle aggregator takes into account the user’s willingness to participate and the type of auxiliary service, designs the basic response incentive and response compensation methods for users, simulates the scheduling of electric vehicle users participating in the auxiliary service of peak regulation and frequency modulation, and establishes the aggregator scheduling strategy. The example analysis demonstrates that the participation of electric vehicle (EV) aggregators in a variety of auxiliary services can enhance the overall benefits, while reasonable incentive prices can maximize the benefits of aggregators, and users can also gain certain benefits by participating in various types of auxiliary services.