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Optimal battery purchasing and charging strategy at electric vehicle battery swap stations

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  • Sun, Bo
  • Sun, Xu
  • Tsang, Danny H.K.
  • Whitt, Ward

Abstract

A battery swap station (BSS) is a facility where electric vehicle owners can quickly exchange their depleted battery for a fully-charged one. In order for battery swap to be economically sound, the BSS operator must make a long-term decision on the number of charging bays in the facility, a medium-term decision on the number of batteries in the system, and short-term decisions on when and how many batteries to recharge. In this paper, we introduce a periodic fluid model to describe charging operations at a BSS facing time-varying demand for battery swap and time-varying prices for charging empty batteries, with the objective of finding an optimal battery purchasing and charging policy that best trades off battery investment cost and operating cost including charging cost and cost of customer waiting. We consider a two-stage optimization problem: An optimal amount of battery fluid is identified in the first stage. In the second stage, an optimal charging rule is determined by solving a continuous-time optimal control problem. We characterize the optimal charging policy via Pontryagin’s maximum principle and derive an explicit upper bound for the optimal amount of battery fluid which allows us to quantify the joint effect of demand patterns and electricity prices on battery investment decisions. In particular, fewer batteries are needed when the peaks and the troughs of these periodic functions occur at different times.

Suggested Citation

  • Sun, Bo & Sun, Xu & Tsang, Danny H.K. & Whitt, Ward, 2019. "Optimal battery purchasing and charging strategy at electric vehicle battery swap stations," European Journal of Operational Research, Elsevier, vol. 279(2), pages 524-539.
    • Handle: RePEc:eee:ejores:v:279:y:2019:i:2:p:524-539
    DOI: 10.1016/j.ejor.2019.06.019
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    References listed on IDEAS

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    Cited by:

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    8. Lingshu Zhong & Mingyang Pei, 2020. "Optimal Design for a Shared Swap Charging System Considering the Electric Vehicle Battery Charging Rate," Energies, MDPI, vol. 13(5), pages 1-16, March.
    9. Asadi, Amin & Nurre Pinkley, Sarah, 2021. "A stochastic scheduling, allocation, and inventory replenishment problem for battery swap stations," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    10. Cui, Dingsong & Wang, Zhenpo & Liu, Peng & Wang, Shuo & Dorrell, David G. & Li, Xiaohui & Zhan, Weipeng, 2023. "Operation optimization approaches of electric vehicle battery swapping and charging station: A literature review," Energy, Elsevier, vol. 263(PE).
    11. Wang, Mengtong & Miao, Lixin & Zhang, Canrong, 2021. "A branch-and-price algorithm for a green location routing problem with multi-type charging infrastructure," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
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    15. Yongzhong Wu & Siyi Zhuge & Guoxin Han & Wei Xie, 2022. "Economics of Battery Swapping for Electric Vehicles—Simulation-Based Analysis," Energies, MDPI, vol. 15(5), pages 1-18, February.
    16. Alp, Osman & Tan, Tarkan & Udenio, Maximiliano, 2022. "Transitioning to sustainable freight transportation by integrating fleet replacement and charging infrastructure decisions," Omega, Elsevier, vol. 109(C).
    17. Fawad Azeem & Bakhtawar Irshad & Hasan A. Zidan & Ghous Bakhsh Narejo & Muhammad Imtiaz Hussain & Tareq Manzoor, 2023. "Design and Analysis of a Peak Time Estimation Framework for Vehicle Occurrences at Solar Photovoltaic and Grid-Based Battery-Swappable Charging Stations," Sustainability, MDPI, vol. 15(23), pages 1-16, November.
    18. Kakillioglu, Emre Anıl & Yıldız Aktaş, Melike & Fescioglu-Unver, Nilgun, 2022. "Self-controlling resource management model for electric vehicle fast charging stations with priority service," Energy, Elsevier, vol. 239(PC).
    19. Al-Kanj, Lina & Nascimento, Juliana & Powell, Warren B., 2020. "Approximate dynamic programming for planning a ride-hailing system using autonomous fleets of electric vehicles," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1088-1106.
    20. Zhang, Mingze & Li, Weidong & Yu, Samson Shenglong & Wen, Kerui & Zhou, Chen & Shi, Peng, 2021. "A unified configurational optimization framework for battery swapping and charging stations considering electric vehicle uncertainty," Energy, Elsevier, vol. 218(C).
    21. Nur Sunar & Jayashankar M. Swaminathan, 2022. "Socially relevant and inclusive operations management," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4379-4392, December.
    22. Zhu, Xiaoxi & Chiong, Raymond & Wang, Miaomiao & Liu, Kai & Ren, Minglun, 2021. "Is carbon regulation better than cash subsidy? The case of new energy vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 146(C), pages 170-192.

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