An Efficient and Incentive-Compatible Mechanism for Energy Storage Markets

A key obstacle to increasing renewable energy penetration in the power grid is lack of utility-scale storage capacity. Transportation electrification has potential overcome this since Electric Vehicles (EVs) that are not transit can provide battery as a service grid. This referred EV-Power integration, and could potentially be milestone pathway decarbonize electricity transportation sectors. We first show if integration done carefully, then contrary improving cost efficiency operating grid, it fact counterproductive it. occurs due two phenomena tandem — randomness EV usage patterns possibility strategic behavior by users. present market-based solution address issue. Specifically, we develop mechanism for markets using which system operator efficiently integrate fleet EVs with random into utilize them storage, satisfy demand at minimum possible cost.