The viability of vehicle-to-grid operations from a battery technology and policy perspective

The idea that electric vehicles can connect to the electric grid to provide ancillary services, such as frequency regulation, peak shaving and spinning reserves is compelling, especially in jurisdictions where traditional forms of storage, back-up or peak supply are unavailable or expensive. Since conception, the economic viability of vehicle-to-grid operations has been the subject of debate. A common shortcoming of most of the previous studies has been a proper accounting of Lithium-ion battery degradation in the development of business models. Very recently, papers on the viability of V2G were published for which the detailed account of battery degradation resulted in what appeared to be two ostensibly contradictory conclusions. In this paper, the authors of these two major studies jointly reconcile their previous conclusions by providing clarity on how methodologies to manage battery degradation can reliably extend battery life. The paper also reviews the associated technology and policy implications of better managing battery use in vehicle and electrical grid applications. • V2G without consideration of battery degradation, on-line, is not viable. • Algorithms with objective of maximizing longevity can extend life of battery. • Establishing compensation model will be challenging and necessary for V2G to expand. • Establishing free market to aggregate and trade grid services will lead to V2G growth.