Economic feasibility analysis of vehicle-to-grid service from an EV owner's perspective in the german electricity market

Abstract

The increasing number of Electrical Vehicles (EV) has led to a tremendous amount of inac- cessible electric energy stored in the EV batteries. Vehicle-to-grid (V2G) services can utilize this energy to profit the EV owners’ and stabilize the grid during faults and fluctuations. This thesis presents a novel way of estimating the profitability of V2G from the EV owner’s perspective. The main contribution of this thesis is the formulation of a profit model that includes the EV battery degradation due to V2G. The work done so far considers fixed battery degradation cost, whereas in this work, an online battery degradation model is used. This model takes into account the parameters that represent real-life scenarios resulting in more accurate battery degradation estimation. The V2G profit model uses the electricity price signal from the German energy market for the year 2019 and estimates the annual profit. The first part of the thesis calculates the profitability of V2G, where EV can participate freely in energy arbitrage. This analysis explores the range of profit when EV participates in V2G purely based on the EV owner’s discretion. A sensitivity analysis is done with respect to battery capacity, battery efficiency, and driving distance. The second part of the thesis evaluates the profitability of EV participating in the German energy market’s frequency regulation ancillary service.=. The analysis compares the profitability of EV participating in primary, secondary, and tertiary frequency regulation services. The results of this thesis provide several findings, the potential profit from V2G services should encourage EV owners’ to participate in the V2G services. Additionally, participating in V2G service can extend the life of the battery. However, this depends on the battery technology and battery usage during V2G services. Ancillary services provide higher potential profit compared to energy arbitrage because of the high remuneration scheme. The ancillary services with both capacity and energy payment result in higher profit compared to ancillary services with only capacity payment.