IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v17y2024i11p2664-d1405675.html
   My bibliography  Save this article

Vehicle-to-Grid Revenue from Retail Time-of-Day Rates, Compared with Wholesale Market Participation under FERC Order 2222

Author

Listed:
  • John G. Metz

    (Center for Research in Wind, College of Earth, Ocean, and Environment, University of Delaware, Newark, DE 19711, USA)

  • Willett Kempton

    (Center for Research in Wind, College of Earth, Ocean, and Environment, University of Delaware, Newark, DE 19711, USA)

Abstract

This article compares potential revenue from electric storage in retail and wholesale electric markets. The retail value can be extracted when storage responds to time-of-day retail prices. The wholesale value is enabled by the recent US Federal Energy Regulatory Commission Order 2222, which requires regional transmission operators (RTOs) to allow distributed storage behind the meter to participate in wholesale electric markets. To quantify the value of these markets, we use realistic time-of-day rates and market prices in one RTO’s ancillary service market. Formulae are developed to estimate the value of behind-the-meter storage in wholesale and retail markets, using an example electric vehicle in a fleet setting. The formulae are also used to compare whether or not net metering is available and different charging rates. The aggregate national storage behind the retail meter is very large, given the projected growth of electric vehicles. Our findings indicate the revenue from wholesale markets can be significantly more than that of retail opportunities. However, the potential in either retail or wholesale markets is currently limited by both state policy and incomplete RTO implementation of FERC orders.

Suggested Citation

  • John G. Metz & Willett Kempton, 2024. "Vehicle-to-Grid Revenue from Retail Time-of-Day Rates, Compared with Wholesale Market Participation under FERC Order 2222," Energies, MDPI, vol. 17(11), pages 1-18, May.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:11:p:2664-:d:1405675
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/17/11/2664/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/17/11/2664/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Apostolaki-Iosifidou, Elpiniki & Codani, Paul & Kempton, Willett, 2017. "Measurement of power loss during electric vehicle charging and discharging," Energy, Elsevier, vol. 127(C), pages 730-742.
    2. Carlo Corinaldesi & Georg Lettner & Daniel Schwabeneder & Amela Ajanovic & Hans Auer, 2020. "Impact of Different Charging Strategies for Electric Vehicles in an Austrian Office Site," Energies, MDPI, vol. 13(22), pages 1-17, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Subhojit Dawn & Gummadi Srinivasa Rao & M. L. N. Vital & K. Dhananjay Rao & Faisal Alsaif & Mohammed H. Alsharif, 2023. "Profit Extension of a Wind-Integrated Competitive Power System by Vehicle-to-Grid Integration and UPFC Placement," Energies, MDPI, vol. 16(18), pages 1-24, September.
    2. Ghotge, Rishabh & van Wijk, Ad & Lukszo, Zofia, 2021. "Off-grid solar charging of electric vehicles at long-term parking locations," Energy, Elsevier, vol. 227(C).
    3. Lane, Blake & Kinnon, Michael Mac & Shaffer, Brendan & Samuelsen, Scott, 2022. "Deployment planning tool for environmentally sensitive heavy-duty vehicles and fueling infrastructure," Energy Policy, Elsevier, vol. 171(C).
    4. Luiz Almeida & Ana Soares & Pedro Moura, 2023. "A Systematic Review of Optimization Approaches for the Integration of Electric Vehicles in Public Buildings," Energies, MDPI, vol. 16(13), pages 1-26, June.
    5. Robin Smit & Eckard Helmers & Michael Schwingshackl & Martin Opetnik & Daniel Kennedy, 2024. "Greenhouse Gas Emissions Performance of Electric, Hydrogen and Fossil-Fuelled Freight Trucks with Uncertainty Estimates Using a Probabilistic Life-Cycle Assessment (pLCA)," Sustainability, MDPI, vol. 16(2), pages 1-38, January.
    6. Wang, Hua & Zhao, De & Meng, Qiang & Ong, Ghim Ping & Lee, Der-Horng, 2020. "Network-level energy consumption estimation for electric vehicles considering vehicle and user heterogeneity," Transportation Research Part A: Policy and Practice, Elsevier, vol. 132(C), pages 30-46.
    7. Zhiwen Zhang & Jie Tang & Jiyuan Zhang & Tianci Zhang, 2024. "Research on Energy Hierarchical Management and Optimal Control of Compound Power Electric Vehicle," Energies, MDPI, vol. 17(6), pages 1-22, March.
    8. Sovacool, Benjamin K. & Kester, Johannes & Noel, Lance & Zarazua de Rubens, Gerardo, 2020. "Actors, business models, and innovation activity systems for vehicle-to-grid (V2G) technology: A comprehensive review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    9. Christian Montaleza & Paul Arévalo & Jimmy Gallegos & Francisco Jurado, 2024. "Enhancing Energy Management Strategies for Extended-Range Electric Vehicles through Deep Q-Learning and Continuous State Representation," Energies, MDPI, vol. 17(2), pages 1-21, January.
    10. Wang, Yue & Das, Ridoy & Putrus, Ghanim & Kotter, Richard, 2020. "Economic evaluation of photovoltaic and energy storage technologies for future domestic energy systems – A case study of the UK," Energy, Elsevier, vol. 203(C).
    11. Alexandre F. M. Correia & Pedro Moura & Aníbal T. de Almeida, 2022. "Technical and Economic Assessment of Battery Storage and Vehicle-to-Grid Systems in Building Microgrids," Energies, MDPI, vol. 15(23), pages 1-23, November.
    12. Zou, Wenke & Sun, Yongjun & Gao, Dian-ce & Zhang, Xu & Liu, Junyao, 2023. "A review on integration of surging plug-in electric vehicles charging in energy-flexible buildings: Impacts analysis, collaborative management technologies, and future perspective," Applied Energy, Elsevier, vol. 331(C).
    13. Mayank Jha & Frede Blaabjerg & Mohammed Ali Khan & Varaha Satya Bharath Kurukuru & Ahteshamul Haque, 2019. "Intelligent Control of Converter for Electric Vehicles Charging Station," Energies, MDPI, vol. 12(12), pages 1-25, June.
    14. Zhichao Zhao & Lu Li & Yang Ou & Yi Wang & Shaoyang Wang & Jing Yu & Renhua Feng, 2023. "A Comparative Study on the Energy Flow of Electric Vehicle Batteries among Different Environmental Temperatures," Energies, MDPI, vol. 16(14), pages 1-15, July.
    15. Hoarau, Quentin & Perez, Yannick, 2019. "Network tariff design with prosumers and electromobility: Who wins, who loses?," Energy Economics, Elsevier, vol. 83(C), pages 26-39.
    16. Seyedamin Valedsaravi & Abdelali El Aroudi & Luis Martínez-Salamero, 2022. "Review of Solid-State Transformer Applications on Electric Vehicle DC Ultra-Fast Charging Station," Energies, MDPI, vol. 15(15), pages 1-35, August.
    17. Rémy Cleenwerck & Hakim Azaioud & Majid Vafaeipour & Thierry Coosemans & Jan Desmet, 2023. "Impact Assessment of Electric Vehicle Charging in an AC and DC Microgrid: A Comparative Study," Energies, MDPI, vol. 16(7), pages 1-17, April.
    18. Strobel, Leo & Schlund, Jonas & Pruckner, Marco, 2022. "Joint analysis of regional and national power system impacts of electric vehicles—A case study for Germany on the county level in 2030," Applied Energy, Elsevier, vol. 315(C).
    19. Robin Smit & Daniel William Kennedy, 2022. "Greenhouse Gas Emissions Performance of Electric and Fossil-Fueled Passenger Vehicles with Uncertainty Estimates Using a Probabilistic Life-Cycle Assessment," Sustainability, MDPI, vol. 14(6), pages 1-29, March.
    20. Hoarau, Quentin & Perez, Yannick, 2018. "Interactions between electric mobility and photovoltaic generation: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 510-522.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:17:y:2024:i:11:p:2664-:d:1405675. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.