As electric grids transition toward higher penetrations of renewable energy, battery energy storage systems (BESS) and aggregated electric vehicle (EV) charging stations are becoming critical assets for maintaining grid reliability and flexibility. This dissertation develops advanced control and optimization algorithms for BESS operators and EV aggregators to enhance grid support capabilities while maximizing economic returns through participation in demand response markets. The proposed methods address key operational challenges, including forecast uncertainty, demand charge management, and real-time market constraints.
First, an economic control model is presented for a BESS deployed at the UC San Diego campus, incorporating real-world complexities such as demand charge management and participation in the Day-ahead (DA) demand response market. The model yields \$96,025 in net revenue over two summer months, validating its practicality in operational settings.
Second, a practical Economic Model Predictive Control (EMPC) framework is developed for BESS to manage monthly demand charges. Acknowledging the limitations of full-month forecasts, a trajectory-based EMPC using 24–48 hour prediction horizons is introduced. The proposed 48-hour rolling-horizon EMPC reduces annual costs by 2\% compared to traditional methods, demonstrating improved cost-efficiency under forecast uncertainty.
Third, a two-layer control strategy is proposed for EV aggregators participating in DA demand response markets. The framework combines offline optimization for DA scheduling with online model predictive control (MPC) to adapt to real-time (RT) deviations in EV charging behavior. Tested on one year of workplace charging data, the method demonstrates the ability to leverage EV flexibility to offset forecast errors and achieve economic gains.
Finally, the two-layer architecture is extended with a RT optimizer that uses a two-stage MPC structure to manage the non-convexity of the problem. The first stage schedules cost-optimal charging at full service levels, while the second stage adjusts service levels to mitigate forecast uncertainty and maximize market revenue, accounting for controlled baselines. Simulations show a fivefold increase in net revenue compared to conventional strategies, achieving \$0.21 per kWh of demand reduction under forecast uncertainty.
Collectively, these contributions offer scalable, economically viable solutions for integrating BESS and EVs into grid operations, enabling more reliable and profitable participation in demand response markets.