Techno-Economic Aspects in Electricity Market Operations with Grid Interfaced Electric Vehicles

The focus of this paper is to explore the oppor- tunities and challenges associated with grid-interfaced electric vehicles in the view of growing electrification of the transporta- tion sector. The study covers the following key concerns, 1) the configuration for electric vehicle (EV) – electric utility interfacing, 2) potentiality of EVs for grid services in competitive market environment, and 3) evaluation of charging/ discharging impacts of a large deployment of EVs on the grid. The study suggests that the three principal participants, the power utilities, the vehicle owners, and the entity called aggregator can proactively work together to better manage the charging demand by the EVs, preventing the negative impacts caused by the uncontrolled charging. Simulative analyses are also presented to highlight the impact of grid-to-vehicle (G2V) and vehicle-to-grid (V2G) on the demand profile and electricity market price. The development of G2V/V2G profiles for grid services would require taking into consideration the vehicles’ heterogeneity which is dependent upon mobility behavior. The prospect of drawing revenue by offering energy and capacity services through V2G in volatile ancillary services market can also offset the barrier of expensiveness in their adoption, in addition to improving the grid reliability.