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

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 require...

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Bibliographic Details
Published in:Energies (Basel) 2024-06, Vol.17 (11), p.2664
Main Authors: Metz, John G., Kempton, Willett
Format: Article
Language:English
Subjects:
Automobile industry
distributed energy resources
Electric power transmission
Electric rates
Electric vehicle charging stations
Electric vehicles
Electricity distribution
Energy consumption
Energy industry
Energy storage
grid storage
Independent regulatory commissions
Participation
Power plants
Prices and rates
Regulation
V2G
V2G interconnection
V2G revenue calculation
vehicle to grid
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Summary: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.
ISSN:1996-1073
1996-1073
DOI:10.3390/en17112664