Market potential of V2G for grid stability

Electrification of transport sector is essential to achieve net-zero targets. Globally, transport contributes 12% of carbon emissions and is the number one contributor of emissions in Nordic countries. Adoption of electric vehicles (EVs) reduces the carbon footprint however poses challenges to electricity grid due to high charging load and lack of sufficient infrastructure. Moreover, with high penetration of renewable energy sources with variable production profile and growing demand with high deployment of EVs the power system stability is at risk and if not managed properly can have dire consequences in the form of nationwide blackouts. This report provides a comprehensive insight in the market potential of V2G deeming high deployment of EVs with high penetration of RES in a SMART power system that is imperative for the security of supply of Europe in the aftermath of energy crisis that started as a result of Russia-Ukraine conflict. Nordic countries have the highest deployment of EVs and if these distributed storage batteries are managed smartly it can be valuable assets to enable more renewable energy in the energy mix and can provide flexibility to cater renewable intermittency. Vehicle-to-Grid (V2G) is an emerging technology that can improve system stability and reliability whilst reducing energy cost and supporting new energy market business models that enables prosumer participation. The main concern of EV owners in participating in V2G is its negative effect on battery life. This report has discussed in detail different types of battery degradation mainly calendar ageing and cyclic ageing. Various battery degradation models are comprehensively studied and integrated in the objective function of the SMART charging. Moreover, this report also provides modelling methods to estimate EV demand for home and public charging using Monte Carlo and gaussian mixture model respectively to include real world charging behaviour of EV owners. The objective function of the modelling equations is formed as a convex problem and to keep the model simple and responsive battery degradation model is run in parallel to calculate cost factor which is fed in the optimization problem and is simulated with SMART charging controller to minimize the electricity cost, recover ownership cost of an EV without compromising user comfort and network thermal limits of the grid with minimal impact on the battery life. Finally, battery degradation is calculated based on the number of cycles used. The model is further developed to include provision of ancillary services and the model is verified using data of two hundred EVs with different plug-in and plug-out times to study economic benefit for user in participating V2G with SMART charging, its impact on grid stability and effect on battery life. From results it is concluded that provision of ancillary services yields more revenue by committing power to grid and has minimal effect of battery. Furthermore, using valley filling EV load can be shifted to off-peak hours when prices are low it reduces electricity cost for users and reduces grid load during peak hours for operators. This report is a part of Best4Grid funded by Nordic Energy Research for the widespread implementation of V2G in Nordic countries.