Key Parameters for Economic Valuation of V2G Applied to Ancillary Service: Data-Driven Approach

Abstract

Global automakers are speeding up both the suspension of production of internal combustion engine vehicles and the transition to electric vehicles (EVs) in order to respond to global goals to become carbon-free and energy-efficient. Recently, vehicle-to-grid (V2G) technology has reached the commercialization stage in Korea. Many studies have mostly discussed profits that an EV owner can make by participating in a regulation program. However, all the stakeholders who are involved with V2G service have not been sufficiently considered. Thus, we propose a novel framework for the economic valuation of V2G in ancillary service. Furthermore, to estimate the available capacity of V2G and find an optimal strategy in order for the V2G service to run, a data-driven approach is proposed in this research. Comprehensive simulation results show the optimal situation requiring the minimum financial support for the EV owner when the V2G-service operator aggregates AC chargers. In addition, promotions from government and public utilities can accelerate the V2G service into the ancillary service. As a final remark, given the flexibility of the proposed framework, it could be adapted to validate its performance in other countries, as part of future works.