Efficient Auction Mechanisms For Two-Layer Vehicle-To-Grid Energy Trading In Smart Grid

One of the major advantages of smart grid is to allow a large number of electric vehicles (EVs) to participate in energy dispatch as elastic energy storage devices via vehicle-to-grid (V2G) technology. As mechanism design for V2G energy trading can stimulate energy interaction between EVs and grids, it is really significant to V2G systems. This paper focuses on efficient mechanism design for energy trading in a two-layer V2G architecture, which includes a grid-aggregator layer and aggregator-EV layer. We propose two auction mechanisms for the two layers, respectively, and discuss three essential economic properties of the mechanisms, i.e., truthfulness, individual rationality, and efficiency. Then, based on these two mechanisms, we illustrate the detailed operation procedure of the two-layer V2G energy trading architecture. Performance evaluation shows that the proposed auction mechanisms greatly reduce social costs, i.e., enhance efficiency, while guaranteeing truthfulness and individual rationality.