Economic assessment on V2G frequency regulation regarding the battery degradation

An economic assessment of the vehicle-to-grid (V2G) frequency regulation is performed regarding the battery degradation. To generalize the results, we utilize the requirements of the electric vehicle and plug-in hybrid electric vehicle prepared by USABC - the energy storage division of the consortium of three major U. S. automakers. During the assessment, actual regulation signal is analyzed to estimate the amount of energy transferred for the V2G regulation. The profits are then calculated and compared with the battery prices to assess the economic feasibility of the V2G regulation. In order to match the end-of-life criterion in the requirements, the profiles prescribed in the battery test manuals are applied. Specifically, a shallow and a deep cycle profiles are applied simultaneously for PHEV batteries, while only a deep cycle profile is applied for EV battery. Considering that the actual regulation signal will cause just a small deviation in the battery state-of-charge and the degradation is far more predominant at a deep cycling, the profits obtained from the deep cycle profile should be regarded as conservative value. Nevertheless, the profits still exceed the current battery prices and it appears likely that the V2G regulation will become a prospective service.