Trilevel Optimization Model for Competitive Pricing of Electric Vehicle Charging Station Considering Distribution Locational Marginal Price

We study the competitive pricing problem of electric vehicle charging station (EVCS). The EVCS determines its optimal pricing strategy considering the competition from the other EVCS and the impact of charging loads on the distribution locational marginal price (DLMP) of the power network. A trilevel optimization model is proposed, where the upper and middle level capture the profit maximization problems of this EVCS and its competitor respectively, while the lower level represents the optimal power flow problem of distribution network. Due to its computational challenge, this model is reformulated into a single level one, and their equivalence is rigorously proved. Furthermore, we develop an exact algorithm to achieve the global optimal solution, and also prove its finite convergence. Finally, numerical results validate our trilevel model and exact algorithm, and demonstrate their merits in increasing profits for the EVCS.