Economic prospects and market operations of V2G in electric distribution network

The contemporary distribution network is metamorphosing into a weak, stressed and vulnerable network. The strategy adopted to ameliorate this potential menace is shifting electricity supply away from today's centralized service model towards a more dispersed structure. Sequel to the non-centralized operational paradigm is the penetration of V2G at the nodes of the electric distribution network. A V2G facility has the potential to provide economic incentives in an electric distribution network. In this paper, economic models are developed to quantify the amount of economic incentives that can be derived from the penetration of V2G into the power distribution network. Different V2G operational strategies are considered, and then observing how this operational changes impact economic incentive due to V2G penetration in the system. Three novel economic models were developed: (1) economic model to quantify the prospects of V2G when used for ancillary services in power systems, (2) economic evaluation due to released energy in the distribution network when V2G penetrates the system, and (3) the impact of location, V2G capacity and feeder loading on annual economic incentives. The results show that V2G promises significant economic incentives. The results obtained in this study emphasize the importance of proper system studies that considers different scenarios of V2G operational strategies.