Profit Determination for Vehicle-to-Grid (V2G) Operation in Smart Grid Environment

Vehicle-to-Grid (V2G) operation has gained immense popularity in the smart grid environment. Furthermore V2G could offer various ancillary services to the power grid. Frequency regulation is one of the ancillary services which offer highest profit to vehicle owner once participated in regulated market. This paper presents the maximum profit for the vehicle owner who participates in the V2G operation by considering the market prices and user constraints. The profits are calculated based on Regulation Market Clearing Price (RMCP) and Locational Marginal Price (LMP). Since the data pattern for LMP and RCMP are similar throughout the week, the day-ahead price model is used to calculate time and duration of charging activity while maximizing the profit to the vehicle owner through frequency regulation. Results from the study indicated that charging sequence have significant impact on the profit function while meeting the required State-of-Charge (SOC).