Abstract
Recently, the use of electric vehicles in a power grid has been attracting attention. The success of vehicle-grid integration (VGI) requires the active participation of not only VGI service providers but also electric vehicle owners, utility companies, and the government in the VGI service. However, until now, such research has not been sufficiently discussed. Thus, we propose a framework for analyzing the economic environment in which each stakeholder can participate, especially in the application of a demand response, and derive its economic value in Korea. Also, through the proposed framework, we suggest optimal scenarios and policy directions for each participant’s successful business. Our results show that government and a utility company need to share their benefits with a VGI service provider to make VGI a success.
Highlights
With the recent rapid increase in electric vehicles (EVs), various ways to use the EVs and the business models are emerging
We define scenarios before reviewing the economic values for each stakeholder participating in the vehicle-grid integration (VGI) service
The goal of scenario analysis is to see if a service provider can make profits by participating in the VGI service and to create a business model in which all stakeholders, including the service provider, can make profits by participating in VGI services
Summary
With the recent rapid increase in electric vehicles (EVs), various ways to use the EVs and the business models are emerging. It is representative to use them for an ancillary service in connection with the grid while they are not being charged. Some research projects, such as the Parker project, have verified the technical issues through a stage of demonstration and estimated the economic benefits [1]. The demand response program is being used by some electric system planners and operators as resource options for balancing supply and demand. It forms a 4.3 GW demand response market in Korea. This compares the operation cost of an LNG power plant with a 4.3 GW scale, and the demand response has the effect of saving about 164 billion KRW from the capacity charge of an LNG power plant.
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