Dynamic Pricing Strategy for Electromobility using Markov Decision Processes

Jan Mrkos, Antonín Komenda, Michal Jakob

2018

Abstract

Efficient allocation of charging capacity to electric vehicle (EV) users is a key prerequisite for large-scale adaption of electric vehicles. Dynamic pricing represents a flexible framework for balancing the supply and demand for limited resources. In this paper, we show how dynamic pricing can be employed for allocation of EV charging capacity. Our approach uses Markov Decision Process (MDP) to implement demand-response pricing which can take into account both revenue maximization at the side of the charging station provider and the minimization of cost of charging on the side of the EV driver. We experimentally evaluate our method on a real-world data set. We compare our dynamic pricing method with the flat rate time-of-use pricing that is used today by most paid charging stations and show significant benefits of dynamically allocating charging station capacity through dynamic pricing.

Paper Citation

in Harvard Style

Mrkos J., Komenda A. and Jakob M. (2018). Dynamic Pricing Strategy for Electromobility using Markov Decision Processes.In Proceedings of the 10th International Conference on Agents and Artificial Intelligence - Volume 2: ICAART, ISBN 978-989-758-275-2, pages 507-514. DOI: 10.5220/0006601505070514

in Bibtex Style

@conference{icaart18,
author={Jan Mrkos and Antonín Komenda and Michal Jakob},
title={Dynamic Pricing Strategy for Electromobility using Markov Decision Processes},
booktitle={Proceedings of the 10th International Conference on Agents and Artificial Intelligence - Volume 2: ICAART,},
year={2018},
pages={507-514},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006601505070514},
isbn={978-989-758-275-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 10th International Conference on Agents and Artificial Intelligence - Volume 2: ICAART,
TI - Dynamic Pricing Strategy for Electromobility using Markov Decision Processes
SN - 978-989-758-275-2
AU - Mrkos J.
AU - Komenda A.
AU - Jakob M.
PY - 2018
SP - 507
EP - 514
DO - 10.5220/0006601505070514