Personalized Dynamic Pricing Policy for Electric Vehicles: Reinforcement learning approach

Abstract

With the increasing number of fast-electric vehicle charging stations (fast-EVCSs) and the popularization of information technology, electricity price competition between fast-EVCSs is highly expected, in which the utilization of public and/or privacy-preserved information will play a crucial role. Self-interest electric vehicle (EV) users, on the other hand, try to select a fast-EVCS for charging in a way to maximize their utilities based on electricity price, estimated waiting time, and their state of charge. While existing studies have largely focused on finding equilibrium prices, this study proposes a personalized dynamic pricing policy (PeDP) for a fast-EVCS to maximize revenue using a reinforcement learning (RL) approach. We first propose a multiple fast-EVCSs competing simulation environment to model the selfish behavior of EV users using a game-based charging station selection model with a monetary utility function. In the environment, we propose a Q-learning-based PeDP to maximize fast-EVCS' revenue. Through numerical simulations based on the environment: (1) we identify the importance of waiting time in the EV charging market by comparing the classic Bertrand competition model with the proposed PeDP for fast-EVCSs (from the system perspective); (2) we evaluate the performance of the proposed PeDP and analyze the effects of the information on the policy (from the service provider perspective); and (3) it can be seen that privacy-preserved information sharing can be misused by artificial intelligence-based PeDP in a certain situation in the EV charging market (from the customer perspective).