Name: Vasu Goswami

SID: 200502321
Course: ENEL 868
Professor: Zhanle (Gerald) Wang
Date: June 5, 2024
Project Proposal
 Project Proposal: Dynamic Pricing for Electric Vehicle Charging
Using Optimization Techniques

Background
The growing use of cars (EVs) is causing issues, for the current power grid setup. The
standard pricing system for charging EVs usually causes spikes, in demand leading to grids
and higher costs to operate. It's essential to handle peak loads and costs efficiently to ensure
the sustainability and effectiveness of EV charging systems. To tackle these issues dynamic
pricing methods have been introduced to encourage users to charge their vehicles at times
spreading out the demand evenly and decreasing peak loads. (Limmer & Rodemann, 2024).

Our goal is to address the issue of inefficiency and increased expenses during peak times at vehicle
charging stations. The main difficulty involves managing the electricity supply and demand in a
manner taking into account the changing behaviors of users and the variability of energy sources.
Resolving this challenge goes beyond improving efficiency; it also affects economic sustainability,
grid reliability and environmental conservation.

Methodologies
Our project will utilize dynamic pricing integrated with optimization techniques to manage
EV charging loads effectively. The methodology involves the following key components:

1. Dynamic Pricing Model: We plan to introduce a pricing strategy that changes electricity
prices in time according to the current demand and supply of the grid. This method
encourages owners of vehicles to charge their cars during busy times ultimately lowering the
ratio, between peak and average loads. (Palaniyappan et al., 2024).

2. Optimization Techniques:
- Machine Learning Algorithms: Techniques such as Decision Tree Regression (DTR) and
XGBoost will be used for short-term power consumption forecasting. These models will
predict demand patterns and adjust pricing dynamically to optimize grid usage (Palaniyappan
et al., 2024).
- Reinforcement Learning (RL): The "SurCharge" system, utilizing RL, will learn from user
behavior and adjust prices accordingly to maximize station profitability while maintaining
grid stability (Narayna & Krishna, 2024).
- Stochastic Dynamic Programming (SDP): To achieve a balance, between making profits
keeping customers satisfied and managing the impact, on the power grid we will integrate
energy sources and energy storage systems. (Luo et al., 2024).
3. Simulation and Validation: We plan to use simulation tools such, as the Simulation of
Urban Mobility (SUMO) to simulate vehicle (EV) charging needs and confirm the
effectiveness of our pricing strategies. We will. Improve the model using real life situations
and data to ensure it works well and can be scaled up. (Narayna & Krishna, 2024).

Hypothesis or Potential Results

We hypothesize that implementing a dynamic pricing model integrated with advanced
optimization techniques will lead to:
1. A significant reduction in peak load, thereby stabilizing the grid and reducing operational
costs.
2. Increased profitability for EV charging station operators due to optimized pricing
strategies.
3. Enhanced user satisfaction as dynamic pricing encourages off-peak charging, leading to
cost savings for EV owners.
4. Improved integration of renewable energy sources, promoting sustainable energy use and
reducing the carbon footprint of EV charging infrastructure.

Significance
The importance of this study is quite comprehensive:
1. Economic Impact: By lowering demand fees and tuning pricing tactics operators of
charging stations can boost their financial gains. This economic advantage could lead to more
funding being allocated to electric vehicle infrastructure. (Limmer & Rodemann, 2024).
2. Technical Impact: Dynamic pricing, combined with optimization techniques, enhances grid
stability and efficiency. The integration of renewable energy sources through advanced
forecasting and real-time pricing adjustments supports the transition to a more resilient and
sustainable grid (Luo et al., 2024).
3. Environmental Impact: Encouraging charging during peak hours and maximizing the
utilization of renewable energy sources help lower greenhouse gas emissions. This supports
initiatives to address climate change and foster development in cities. (Palaniyappan et al.,
2024).

Our project seeks to offer a solution, to the rising need, for EV charging infrastructure by considering
technical and environmental factors.
References

1. Limmer, S., & Rodemann, T. (2024). Peak load reduction through dynamic pricing for
electric vehicle charging.
2. Palaniyappan, B., Kumar R, S., & Vinopraba, T. (2024). Dynamic pricing for load shifting:
Reducing electric vehicle charging impacts on the grid through machine learning-based
demand response.
3. Narayna, A., & Krishna, A. (2024). A Dynamic pricing System for Electric Vehicle
Charging Management Using Reinforcement Learning.
4. Zhang, Q., Hu, Y., Tan, W., Li, C., & Ding, Z. (2024). Dynamic Time-Of-Use Pricing
Strategy for Electric Vehicle Charging Considering User Satisfaction Degree.
5. Chen, Q., & Folly, K. A. (2024). Application of Artificial Intelligence for EV Charging and
Discharging Scheduling and Dynamic Pricing.
6. Bitencourt, L. de A., Borba, B. S. M. C., Maciel, R. S., Fortes, M. Z., & Ferreira, V. H.
(2024). Optimal EV Charging and Discharging Control Considering Dynamic Pricing.
7. Lai, S., Tao, Y., & Zhao, J. (2024). Pricing for Electric Vehicle Charging Stations Based on
the Responsiveness of Demand.
8. Luo, C., Huang, Y.-F., & Gupta, V. (2024). Stochastic Dynamic Pricing for EV Charging
Stations With Renewable Integration and Energy Storage.