A new report released Tuesday from Navigant Research discusses how to develop a strategy to best extract grid services embedded in plug-in electric vehicle (PEV) batteries, charging loads, and charging infrastructure to help support microgrid and virtual power plant (VPP) deployments.
The projected growth in PEVs offers both challenges and opportunities to distribution utilities. If not managed in an intelligent way, PEVs can pose a threat to overall grid reliability. Yet, if aggregated and optimized with smart controls, they can offer grid services under new business model platforms such as microgrids and VPPs.
To succeed in the market, according to the report, PEV ecosystem stakeholders should support the development of communication standards, shape regulations on frequency regulation services, and explore new energy as a service (EaaS) business models.
Meanwhile, microgrid ecosystem stakeholders should focus on how PEVs provide value internally to the microgrid during emergency islanding and pair PEV fleets with stationary storage devices. VPP ecosystem stakeholders should use advances in artificial intelligence, advocate for market reforms, and seek opportunity in the distributed energy resource management system (DERMS) market.
Vehicle grid integration (VGI) enables PEVs to participate in grid balancing schemes as generation or demand assets for grid operators as well as similar balancing options for smaller subsets of the grid, including microgrids and VPPs. PEVs may do this by modulating the rate of power at which the battery is charged, known as V1G (unidirectional VGI), or by providing power back to the grid, known as vehicle-to-grid (V2G).
The report, Implementing EV-Based Grid Services for Microgrids and VPPs, discusses how to develop a strategy to best extract grid services embedded in PEV batteries, charging loads, and charging infrastructure to help support microgrid and VPP deployments.
The study defines the grid services possible from PEVs, showcases global deployments that tap PEVs as DER for microgrids and VPPs, and identifies lessons learned from deployments that point to market opportunities. Actionable recommendations for PEV, microgrid and VPP stakeholders when implementing PEV-based applications within the next five years are also provided.
“While the primary purposes of these platforms differ—resiliency versus bidirectional value exchanges—they share the common goal of extracting value from distributed energy resources (DER) portfolios,” says Peter Asmus, research director with Navigant Research.