Economic analyses of plug-in electric vehicle battery providing ancillary services

Abstract

This paper explores the potential financial return for using plug-in electric vehicles (PEVs) as a grid resource. There are two methods for PEVs to provide ancillary services call interruptible load and vehicle to grid The contract market is introduced first, then the method to calculate the cost benefit of plug-in electric vehicles (PEVs) to provide ancillary services are proposed. Additionally, the expected profits and profits of providing the ancillary services when considering the uncertainties of driving behaviors are both calculated and compared. The calculation results indicate that profits of participating in frequency regulation are higher than that of reserve services. When penalty is neglected or the penalty coefficient is low, the revenue of regulation down services is relatively high. However, with the increasing of penalty factor, the profits decrease dramatically. When the penalty coefficient is sufficiently high, participating in regulation up services in V2G mode is most profitable.