Stackelberg Game-Based EV Pricing and Routing Framework to Enhance Local Flexibility

Electric vehicles (EVs), with their large battery capacities, can help address power system challenges when coordinated with EV aggregators (EVAs). However, their integration is influenced by transportation dynamics and owner preferences, complicating efficient utilization. To overcome these challenges, this paper proposes a routing scheme using Stackelberg game-based pricing to enhance distribution grid flexibility. The distribution system operator (DSO) determines the distribution locational marginal price and required demand response, which are then provided to the EVA. The EVA’s revenue depends on its compliance with the DSO’s demand response requirements. To ensure profitability, the EVA calculates an adjustable pricing range for Electric Vehicle Charging Stations (EVCS) and secures the required EV capacity. EV owners decide whether to charge based on the adjusted price, considering time and opportunity costs. The proposed algorithm has been validated using the IEEE benchmark system in Python and a transportation model for Jeju Island. Results demonstrate that the framework enhances grid flexibility through voltage stabilization while improving profits for all participants.