Economic Impacts of the Demand Response of Electric Vehicles Considering Battery Degradation

The increase in the number of electric vehicles (EVs) has led to increased global expectations that the application of this technology may result in the reduction of CO2 emissions through the replacement of conventional petrol vehicles and ensure the flexibility of power systems such as batteries. In this paper, we propose a residential demand response (DR) evaluation model that considers the degradation mechanism of the EV battery and examines the effective battery operation. We adopted the already-proposed NiMnCo battery degradation model to develop an EV DR evaluation model. In this model, the battery operation is optimized to minimize the electricity and degradation costs affected by ambient temperature, battery state of charge (SOC), and depth of discharge. In this study, we evaluated the impact of the relevant parameters on the economics of the DR of EV batteries for 10 all-electric detached houses with photovoltaic system assuming multiple EV driving patterns and battery (dis)charging constraints. The results indicated that the degradation costs are greatly affected by the SOC condition. If a low SOC can be managed with a DR strategy, the total cost can be reduced. This is because the sum of the reduction of purchased cost from the utility and calendar degradation costs are higher than the increase of the cycle degradation cost. In addition, an analysis was conducted considering different driving patterns. The results showed that the cost reduction was highest when a driving pattern was employed in which the mileage was low and the staying at home time was large. When degradation costs are included, the value of optimized charging and discharging operations is more apparent than when degradation costs are not considered.