I. Introduction
Electrification of the transportation system using renewable energy would gradually decrease the emissions of greenhouse gases by relieving the energy dependency on fossil fuels. For this aim, EVs are accounted as one of the new technologies to reduce the economic and environmental concerns in the smart grid era. With the emergence of bidirectional power transfer capability for EVs, i.e., vehicle-to-grid (V2G), there has been a possibility to increase the grid utilization and reduce the cost for the EV owner [1]. A reoccurring concern and argument against V2G regards how the EV battery is affected by V2G usage. The concern is that the EV battery will age prematurely. Since the battery cost represents a substantial part of the EV’s total cost, this can reduce the value of the EV that in the worst case requires a premature battery replacement. The optimal scheduling of EVs thus requires to include EV battery degradation. The optimization problem then becomes more complex as it requires determining the optimized charge/discharge behavior of EVs to achieve the minimum cost, composed of charging cost, net discharge revenue, and cost of battery degradation [2].