Zhou, Yikai (2026) Optimal Aggregator Pricing in V2G: A Supply-Response Stackelberg Model. Masters thesis, Concordia University.
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Abstract
The rapid growth of renewable energy creates challenges for the power grid, such as unstable electricity prices and stresses on energy supply. Vehicle-to-Grid (V2G) technology offers a solution by allowing Electric Vehicles (EVs) (Tesla Model 3 as a big portable power bank) to act as a
small power storage. This thesis studies how an EV aggregator can set the best price to maximize profit while coordinating with many different drivers.
We develop a supply-response Stackelberg game model. In this model, the aggregator sets a single price for both charging and discharging. EV drivers then decide whether to buy, sell, or just stay in the car based on their current battery level and their range anxiety. We use a Monte-Carlo
simulation with 100,000 vehicles to test how the fleet responds to different prices.The results show that profit is maximized at a specific price point. If the price is too low, most drivers only charge; if it is too high, most drivers prefer to stay idle to save their battery (unlike gas powered cars, EV cost almost 0 electricity when idle). We also find that driver preferences are critical that urban drivers with lower range anxiety respond to lower prices, while rural drivers require higher prices to participate in the V2G. This thesis provides a practical way to understand how user behaviour affects V2G economics.
| Divisions: | Concordia University > Faculty of Arts and Science > Economics |
|---|---|
| Item Type: | Thesis (Masters) |
| Authors: | Zhou, Yikai |
| Institution: | Concordia University |
| Degree Name: | M.A. |
| Program: | Economics |
| Date: | 16 March 2026 |
| Thesis Supervisor(s): | Li, Ming and Dee, Jan Victor |
| Keywords: | Simulation, V2G, Stackelberg Model |
| ID Code: | 996827 |
| Deposited By: | Yikai Zhou |
| Deposited On: | 29 Jun 2026 14:24 |
| Last Modified: | 29 Jun 2026 14:24 |
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