A Review of EV Battery Utilization in Demand Response Considering Battery Degradation in Non-Residential Vehicle-to-Grid Scenarios

Integrating fleets of electric vehicles (EVs) into industrial applications with smart grids is an emerging field of important research. It is necessary to get a comprehensive overview of current approaches and proposed solutions regarding EVs with vehicle-to-grid and smart charging. In this paper, various approaches to battery modeling and demand response (DR) of EV charging in different decentralized optimization scenarios are reviewed. Modeling parameters of EVs and battery degradation models are summarized and discussed. Finally, optimization approaches to simulate and optimize demand response, taking into account battery degradation, are investigated to examine the feasibility of adapting the charging process, which may bring economic and environmental benefits and help to alleviate the increasing demand for flexibility. There is a lack of studies that comprehensively consider battery degradation for EV fleets in DR charging scenarios where corresponding financial compensation for the EV owners is considered. Therefore, models are required for estimating the level of battery degradation endured when EVs are utilized for DR. The level of degradation should be offset by providing the EV owner with subsidized or free electricity provided by the company which is partaking in the DR. This trade-off should be optimized in such a manner that the company makes cost savings while the EV owners are compensated to a level that is at least commensurate with the level of battery degradation. Additionally, there is a lack of studies that have examined DR in smart grids considering larger EV fleets and battery degradation in multi-criteria approaches to provide economic and environmental benefits.