  Plug-in hybrid electric vehicles (PHEVs) are an environmentally friendly
technology that is expected to rapidly penetrate the transportation system.
Renewable energy sources such as wind and solar have received considerable
attention as clean power options for future generation expansion. However,
these sources are intermittent and increase the uncertainty in the ability to
generate power. The deployment of PHEVs in a vehicle-to-grid (V2G) system
provide a potential mechanism for reducing the variability of renewable energy
sources. For example, PHEV supporting infrastructures like battery exchange
stations that provide battery service to PHEV customers could be used as
storage devices to stabilize the grid when renewable energy production is
fluctuating. In this paper, we study how to best site these stations in terms
of how they can support both the transportation system and the power grid. To
model this problem we develop a two-stage stochastic program to optimally
locate the stations prior to the realization of battery demands, loads, and
generation capacity of renewable power sources. We develop two test cases to
study the benefits and the performance of these systems.
