A regulatory-driven planning framework for fast charging station deployment in power distribution systems

This paper proposes a regulatory-driven planning framework for the optimal deployment of fast charging stations (FCSs) in power distribution systems. In this framework, the regulator incentivizes the distribution system operator (DSO) to enhance two key technical metrics: system reliability under N-1 contingencies and peak-shaving performance under normal state, through collaboration with the FCS aggregator enabled by coordinated vehicle-to-grid (V2G) and grid-to-vehicle (G2V) services. To accomplish this goal, a four-step planning process is proposed. Initially, the baseline FCS planning is determined by the aggregator. Subsequently, the regulator establishes well-structured regulatory mechanisms, including a penalty-reward model (PRM) to promote system reliability and a reward model (RM) to enhance peak-shaving performance. Next, the baseline objective functions of the DSO and FCS aggregator are identified to evaluate their economic interactions. Finally, a system-oriented FCS planning model is formulated as a mixed-integer linear programming (MILP) problem that captures the interdependent interactions between both entities, wherein their objectives are jointly optimized under uncertainty in traffic flow and consumers’ demand. Simulation results on the IEEE 33-bus test system verify the effectiveness of the proposed framework in enhancing not only the economic performance of the DSO and FCS aggregator but also the system’s reliability and peak-shaving capability, demonstrating its potential as a practical win-win mechanism for both entities.