Assessing the incorporation of battery degradation in vehicle-to-grid optimization models

Abstract Bidirectional charging allows energy from the electric vehicles (EV) to be fed back into the grid, offering the possibility of price-optimized charging. However, such strategies cause higher charging cycles, which affect the cyclic aging of the battery and reduce its service life, resulting in additional costs for the user. Various approaches are used to account for battery degradation in optimizations models of bidirectional charging use-cases. In this paper, a systematic literature review is carried out to identify existing battery degradation models and to determine the most suitable one. In the models under review, degradation is integrated into the optimization’s objective function. The review shows that there are mainly two strategies suitable for vehicle-to-grid (V2G) optimization problems: A weighted Ah-throughput model (wAh-model) with a constant degradation cost factor and a performance based model (pb-model) linking the degradation to measurable parameters such as capacity loss. Both models were implemented and analyzed. The results show that the wAh-model is the better optimization option, as in the pb-model the current state of health of the battery has an excessively large impact on the calculated degradation cost. It leads to excess costs due to a higher aging rate at the beginning of life which proves to be not ideal in the optimization. The sensitivity analysis reveals that altering the initial State of Health (SoH) from 95 % in the base scenario to 100 % leads to an increase in average degradation costs by factor 9.71 in the pb-model. From the evaluated base scenario the average degradation costs for the pb-model are 0.45 cent/kWh and for the wAh-model 0.23 cent/kWh.