Medium-term planning of vehicle-to-grid aggregators for providing frequency regulation service

Utilization of electric vehicles’ battery to provide frequency regulation service in electricity markets is a technically feasible and economically attractive idea. The role of aggregators as a middleman between electric vehicle owners and the frequency regulation market has been discussed in literature. However, the economic interaction between the aggregator and the vehicle owners on division of interests is still a missing point. In this paper, a new pricing model for aggregators of electric vehicles is proposed in a way, that not only maximizes its profit, but also the vehicle owners have sufficient incentives to take part in the offered Vehicle-to-Grid program. In our proposed model, the aggregator takes into account the depreciation cost of electric vehicle batteries and the cost of net energy transaction between the electric vehicles and the grid, and considers these items in settling accounts with vehicle owners. The proposed model has been implemented on PJM frequency regulation market and the results are discussed in the paper.