Estimating the Annual Microeconomic Benefits of Vehicle-to-Grid Services in New York City Gerad M. Freeman M.S. Candidate in Alternative Energy

 Goal of Economic Model  Review of Literature  Overview of Model Scenarios  Simple Application of Scenarios  Application to New York City Data  Results and Sensitivities  Goal of Economic Model  Review of Literature  Overview of Model Scenarios  Simple Application of Scenarios  Application to New York City Data  Results and Sensitivities Outline of Presentation

Goals of Economic Model  To quantify the benefits an electric vehicle (EV) owner can expect to gain from providing Vehicle-to-Grid (V2G) energy storage services to their electric utility.  To provide the model user with reasonable customization options relating to participation scenario and technology applied.  To quantify the benefits an electric vehicle (EV) owner can expect to gain from providing Vehicle-to-Grid (V2G) energy storage services to their electric utility.  To provide the model user with reasonable customization options relating to participation scenario and technology applied. Image: Fraunhofer

Review of Literature

Sell If LBMP>TOU Purchase Price Scenario 1: Arbitrage-Guided V2G 1.Use battery capacity during one-way commute in morning. 2.While connected to grid at work, sell electricity during hours where Location-Based Marginal Price (LBMP) > Time-of-Use (TOU) Purchase Price from the user’s utility. 3.Use battery capacity during one-way commute in afternoon. 4.While connected to grid at home, sell electricity during hours where LBMP > TOU Purchase Price. 5.Charge to specified maximum state-of-charge during nighttime off-peak.  Only discharge to specified maximum depth-of-discharge + one-way commute energy requirement. Scenarios Modeled in Analysis Sell If LBMP>TOU Purchase Price Buy

Scenarios Modeled in Analysis SellBuy Scenario 2: Work-Hour Price Taker V2G 1.Use battery capacity during one-way commute in morning. 2.While connected to grid at work, sell electricity no matter what. 3.Use battery capacity during one-way commute in afternoon. 4.Charge to specified maximum state-of-charge during nighttime off-peak.  Only discharge to specified maximum depth-of-discharge + one-way commute energy requirement.

Scenarios Modeled in Analysis If LBMP>Defined Price Sell Scenario 3: User-Defined Selling Price V2G 1.Use battery capacity during one-way commute in morning. 2.While connected to grid at work, sell electricity when LBMP > user-set selling price requirement. 3.Use battery capacity during one-way commute in afternoon. 4.While connected to grid at home, sell electricity when LBMP > user-set selling price requirement. 5.Charge to specified maximum state-of-charge during nighttime off-peak.  Only discharge to specified maximum depth-of-discharge + one-way commute energy requirement. Buy Sell If LBMP>Defined Price

Application 1: Simplified V2G Economic Model  To show how V2G storage should work, a one-year simple model was created.  A simulated electric utility Time-of-Use Purchase Rate Structure was created.  Peaks and semi-peaks correlate with load profile by season.  The simplified sinusoidal LBMP structure acts as the effective electricity selling price.

Application 1: Results of Simplified Model *Key assumptions:  Single battery electric vehicle with 30 kWh battery  2.75 kWh of battery capacity is used for one-way commute  The point of grid connection can provide 7.2kW of charging or discharging (240V, 30A)  The max depth-of-discharge is 80% and the max state-of-charge is 80%  For the user-defined scenario, the seller requires a minimum of $0.15/kWh *Key assumptions:  Single battery electric vehicle with 30 kWh battery  2.75 kWh of battery capacity is used for one-way commute  The point of grid connection can provide 7.2kW of charging or discharging (240V, 30A)  The max depth-of-discharge is 80% and the max state-of-charge is 80%  For the user-defined scenario, the seller requires a minimum of $0.15/kWh

Application 2: New York City ISO Electricity Data Minimum increases $0.90 Maximum increases $0.93 Interquartile Range of ~$0.03 – ~$0.07  Zonal load trend is mostly level.  Minimum ~4GW all 5 years.  Median ~6GW all 5 years.  Maximum ~11GW all 5 years.  Zonal load trend is mostly level.  Minimum ~4GW all 5 years.  Median ~6GW all 5 years.  Maximum ~11GW all 5 years.

Application 2: Local Utility Pricing Structure Charging period

Application 2: Automobile Data in Analysis  The average modern BEV has a battery capacity of 31kWh and level-2 charging infrastructure capable of delivering 7kW at ~86% efficiency.  Range is also increasing with new BEVs, allowing more battery to be committed to V2G service provision.  The average modern BEV has a battery capacity of 31kWh and level-2 charging infrastructure capable of delivering 7kW at ~86% efficiency.  Range is also increasing with new BEVs, allowing more battery to be committed to V2G service provision.

Application 2: Assumptions Source: Deutsche Bank Markets Research. (2015) Crossing The Chasm. New York, NY: Shah & Booream-Phelps.

Application 2: Arbitrage-Guided V2G Results & Comments  Little value exists for Arbitrage-Guided V2G on average.  However, a general upward trend in economic benefits exists as battery prices improve and LBMP range shifts toward higher maximum extremes.

Application 2: Work-Hour Price Taker V2G Results & Comments  Being a price taker results in large losses due mainly to degradation costs.  However, the upward trend in benefits persists in the case of Work-Hour Price Taker V2G.

Application 2: User-Defined Selling Price V2G Results & Comments  Optimal selling price of at least $0.39/kWh allows participants to take advantage of extreme price fluctuations while limiting added battery cycling.  Positive benefit is seen over all car models if users set their selling price intelligently. $0.39

Battery/Power Electronic Sensitivities  As stated previously, the average BEV has a 31kWh battery, a 7kW level-2 charger, and an approximate range of 100 miles per charge.  Charge/Discharge efficiency is very important in this application.

 This analysis presents the value of providing V2G energy storage services using a wide range of available technologies.  12 unique, current BEV models to choose from  Five unique point of connection characteristics  Participant choice is central to this model.  Three economically-derived scenarios of participation  Flexibility in work/commute hours and distance  Participant chooses max depth-of-discharge and max state-of-charge for his/her battery  User defines selling price requirement where applicable  A particular emphasis is placed on the recent trend of consumer benefit with the emergence of new technologies.  This analysis presents the value of providing V2G energy storage services using a wide range of available technologies.  12 unique, current BEV models to choose from  Five unique point of connection characteristics  Participant choice is central to this model.  Three economically-derived scenarios of participation  Flexibility in work/commute hours and distance  Participant chooses max depth-of-discharge and max state-of-charge for his/her battery  User defines selling price requirement where applicable  A particular emphasis is placed on the recent trend of consumer benefit with the emergence of new technologies. Concluding Remarks