Economics of V2G frequency regulation in consideration of the battery wear

Abstract

We have assessed the economic feasibility of vehicle-to-grid (V2G) frequency regulation taking the battery wear in consideration. The typical regulation signal is first investigated along with the current regulation market price to estimate the unit income for the transferred energy. The available energy for a battery until its end-of-life (EOL) is estimated using the specifications prepared by an authoritative battery consortium, USABC, to generalize the result. Based on the estimates obtained, a prospective income for the V2G regulation is estimated and compared with current battery prices. The result shows that the expected V2G income overwhelms current battery price, and thus it clearly appears to be an economically prospective service.