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Balancing service with the electric car: profitability analysis

Publications - Article

Balancing service with the electric car: profitability analysis

By participating in the Dispatching Service Market while charging, electric cars could provide balancing service to the system while reducing their electricity bill. Here, we estimate the offer price levels for the service that are cheapest for the user.

Thanks to their rapid and flexible response, battery-based Storage Systems (SdAs), including those of Electric Vehicles (EVs), could usefully contribute to the provision of dispatching services, thus increasing the flexibility of the electricity system. Here we simulate the provision, by an EV, of balancing services on the Balancing Market (MB), in order to analyze its profitability for the owner of the EV itself. More precisely, for a domestic end user and for a non-domestic (business) end user, with different charging needs, we evaluate the annual electricity bill of the EV associated with providing the service, in unidirectional (V1G) or bidirectional (V2G) mode, while charging. As a comparison, we take a reference bill ( benchmark ) for charging, assuming that all energy is purchased at day-ahead market prices. In particular, we conduct a sensitivity analysis of the results with respect to the prices offered for the service (assumed constant throughout the year). The analysis shows that, with V2G charging, the greater energy exchanges, compared to those of V1G charging and benchmark charging, can lead to higher bills, due to the charges and taxes applied on these exchanges. However, for both V1G and V2G charging, there are price regions in which the service can be considered profitable in the sense that the related bill is less than or equal to the benchmark bill. The profitability regions expand, and the maximum saving compared to the benchmark bill increases, if we introduce partial discounts on the charges in the bill and/or an additional remuneration for the service for the capacity (power) made available.

 

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