Economic Feasibility of V2G Frequency Regulation in Consideration of Battery Wear

Sekyung Han and Soohee Han
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Sekyung Han: Energy Technology Research Institute, National Institute of Advanced Institute of Industrial Science and Technology, Tsukuba Center 2, 1-1-1 Umezono, Tsukuba, Ibaraki 305-8568, Japan
Soohee Han: Department of Electrical Engineering, Konkuk University, 120 Neungdong-ro, Gwangjin-gu, Seoul 143-701, Korea

Energies, 2013, vol. 6, issue 2, 1-18

Abstract: An economic feasibility study of vehicle-to-grid (V2G) frequency regulation is performed in consideration of battery wear. Usually, a transaction for frequency regulation is made in terms of power capacity while the battery-wear proceeds in proportion to the absolute amount of energy transferred. In order to relate the two quantities, we first estimate the amount of transferred energy in terms of contracted power capacity, and hence regulation income, by analyzing actual regulation signals and transactions. On the other hand, the amount of transferrable energy during the life cycle of a battery is estimated analyzing some pervasive specifications for electric vehicle (EV) batteries. The expected V2G income is then estimated and compared with battery prices to judge the economic feasibility of V2G regulation. In the latter part of the paper, the assessment result is validated with actual cycle life data of an EV battery cell. As a result, it is concluded that the estimated profit exceeds current market price of EV batteries, indicating that V2G regulation is an economically feasible service.

Keywords: battery wear; battery cycle life; vehicle-to-grid; electric vehicle; frequency regulation; economics (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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