The value of electric vehicles in the context of evolving electricity markets

Abstract

The recent introduction of a number of electricity market instruments is designed to incentivise investment in reliable peaking capacity and power quality services. In this context, the energy storage capability of plug-in electric vehicles has the potential to provide valuable services to these markets. Using the UK as a case study, this paper quantifies the current and projected value streams for specific ancillary services markets, and evaluates the criteria for participation of EVs in the form of demand response. Using analysis of empirical EV usage data, the basis for a proposed aggregator operating model based on driver and vehicle classification is presented, taking into account charge/discharge depending on the time of day, thus providing an insight into the potential revenues that can be expected for an EV V2G aggregator.