Energy and Cost Minimization of Bidirectional Frequency Regulation Service by EV Following FERC Order 755

Increasing share of renewable energy sources in the electric sector, forces the system operators to include new resources for frequency regulations with fast ramping. Electric vehicles (EVs) with fast charging and short battery reaction time are becoming promising source for frequency regulations. Therefore, it is worthwhile to evaluate EV's abilities and associated cost to participate in the frequency regulation activity. In this paper, we first present a linear model of EV operating in charging/discharging mode and impact of battery degradation during these activities. We then define a cost function for EV operation and its minimization using linear programming. After calculating the optimal operating points of EV, a novel framework was developed to calculate optimal bidding components of EV, regulation capacity and energy cost function to participate in the regulation market. Simulation results show the efficiency of the developed linear model. Results also provide pathways for possible opportunities of revenue stream for the EV owner, by offering the regulation up/down services, without limiting the EV owners level of comfort.