Feasibility of vehicle-to-grid (V2G) implementation in Japan: A regional analysis of the electricity supply and demand adjustment market

Vehicle-to-Grid (V2G) technology forms a critical bridge between electric vehicles (EVs) and renewable energy, playing a transformative role in the global shift towards a low-carbon future. Despite its promise, the impact of regional differences on V2G potential, particularly within specific application scenarios, remains largely unexplored. This study employs an agent-based modeling approach to evaluate V2G potential across Japan's 47 prefectures, with a focus on its integration into an energy reserve service business model. Our analysis reveals that EV ownership is the dominant factor influencing regional variability, with the Tokyo Metropolitan Area, Aichi, and Kanagawa emerging as top candidates for V2G deployment. Interestingly, when EV ownership is excluded from consideration, regions like Okinawa, Kagoshima, and Ibaraki show leadership in V2G potential. These findings highlight the existence of regional priorities for V2G application. Moreover, a ‘High Demand Disparity’ is observed in the power supply and demand adjustment market, where V2G systems are often either underutilized or overwhelmed, leaving many idle. The study underscores the need for region-specific strategies and the integration of diverse business models to fully capitalize on V2G's potential in various demand adjustment scenarios.