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Optimization of Battery Charging and Purchasing at Electric Vehicle Battery Swap Stations

Author

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  • Frank Schneider

    (Supply Chain Management and Management Science, University of Cologne, 50931 Cologne, Germany)

  • Ulrich W. Thonemann

    (Supply Chain Management and Management Science, University of Cologne, 50931 Cologne, Germany)

  • Diego Klabjan

    (Industrial Engineering and Management Science, Northwestern University, Evanston, Illinois 60208)

Abstract

An operator of a network of battery swap stations for electric vehicles must make a long-term investment decision on the number of batteries and charging bays in the system and periodic short-term decisions on when and how many batteries to recharge. Both decisions must be made concurrently, because there exists a trade-off between the long-term investment in batteries and charging bays, and short-term expenses for operating the system. Costs for electric energy as well as demand rates for batteries are stochastic: We consider an infinite time horizon for operation of the system. We derive an optimization problem, which cannot be solved optimally in a reasonable time for real world instances. By optimally solving various small problem instances, we show the mechanics of the model and the influence of its parameters on the optimal cost. We then develop a near-optimal solution heuristic based on Monte Carlo sampling following the ideas of approximate dynamic programming for the infinite horizon dynamic program. We show that operating battery swap stations in a network where lateral transshipments are allowed can substantially decrease expected operating costs.

Suggested Citation

  • Frank Schneider & Ulrich W. Thonemann & Diego Klabjan, 2018. "Optimization of Battery Charging and Purchasing at Electric Vehicle Battery Swap Stations," Transportation Science, INFORMS, vol. 52(5), pages 1211-1234, October.
    • Handle: RePEc:inm:ortrsc:v:52:y:2018:i:5:p:1211-1234
    DOI: 10.1287/trsc.2017.0781
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    8. Guo, Fang & Zhang, Jingjing & Huang, Zhihong & Huang, Weilai, 2022. "Simultaneous charging station location-routing problem for electric vehicles: Effect of nonlinear partial charging and battery degradation," Energy, Elsevier, vol. 250(C).
    9. Kewcharoenwong, Panitan & Li, Qiaofeng & Üster, Halit, 2023. "Lagrangean relaxation algorithms for fixed-charge capacitated relay network design," Omega, Elsevier, vol. 121(C).
    10. Yu Feng & Xiaochun Lu, 2021. "Construction Planning and Operation of Battery Swapping Stations for Electric Vehicles: A Literature Review," Energies, MDPI, vol. 14(24), pages 1-19, December.
    11. Shuna Wang & Zhi-Hua Hu, 2021. "Green Logistics Service Supply Chain Games Considering Risk Preference in Fuzzy Environments," Sustainability, MDPI, vol. 13(14), pages 1-32, July.
    12. Kumar, Rajeev Ranjan & Chakraborty, Abhishek & Mandal, Prasenjit, 2021. "Promoting electric vehicle adoption: Who should invest in charging infrastructure?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    13. Xianhao Shen & Yexin Zhang & Decheng Wang, 2022. "Online Charging Strategy for Electric Vehicle Clusters Based on Multi-Agent Reinforcement Learning and Long–Short Memory Networks," Energies, MDPI, vol. 15(13), pages 1-14, June.
    14. Li, Linman & Li, Yuqing & Liu, Ran & Zhou, Yaoming & Pan, Ershun, 2023. "A Two-stage Stochastic Programming for AGV scheduling with random tasks and battery swapping in automated container terminals," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 174(C).
    15. Shorooq Alaskar & Mohamed Younis, 2024. "Optimized Dynamic Vehicle-to-Vehicle Charging for Increased Profit," Energies, MDPI, vol. 17(10), pages 1-23, May.
    16. Feifeng Zheng & Zhaojie Wang & Ming Liu, 2022. "Overnight charging scheduling of battery electric buses with uncertain charging time," Operational Research, Springer, vol. 22(5), pages 4865-4903, November.
    17. Hu, Xu & Yang, Zhaojun & Sun, Jun & Zhang, Yali, 2023. "Optimal pricing strategy for electric vehicle battery swapping: Pay-per-swap or subscription?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    18. Dongpu Fu & Jiarui Sun & Cuiyou Yao & Fulei Shi, 2024. "The influence of policy incentives on the diffusion of battery-swapping taxis and stations: a coupled evolutionary game model in complex networks," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 26945-26969, October.

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