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To solve the problem that charging is constrained by the capacity of distribution facilities under high penetration of electric vehicles (EVs), this paper proposes to improve EV charging capacity through battery energy storage (BES) and presents the design of a locally organized market, namely micro-market, that manages the energy transactions between EVs and the BES. When the load of a distribution system approaches its limit, additional EV charging demand is met by the BES, and the price is determined in an automated two-way bidding process. This mechanism can increase EV charging capacity as well as provide an additional revenue stream for the BES in distribution systems. The presented micro-market design ensures the balance between revenue and expenditure of market participants. The organization and settlement process of the micro-market are demonstrated using an example case, and the effectiveness of the design is proved.

Micro-market Operation Strategy Based on Two-way Bidding of Electric Vehicles and Battery Energy Storage