Abstract:

Primary frequency regulation (FR) service has been demonstrated to be technically feasible and economically profitable in different studies worldwide. This paper determines the profitability of the primary frequency regulation service considering the wear of the electric vehicle (EV) battery as a cost. To evaluate the profitability of the FR service, the cost of degradation from FR provision is separated from the degradation caused by driving usage. The overall economic framework is applied in Denmark, both DK1 and DK2, and Japan, by considering historical frequencies. The DK2 FR market framework is taken as reference also for the Japanese and the DK1 cases. It was observed that the electricity price and the charger efficiency are two main parameters that affect the profitability of the service. Indeed, with domestic prices the charger losses are too large and there are only economic losses in the service provision.