Market potential analysis for the provision of balancing reserve with a fleet of electric vehicles

This paper analyses the economic and technical potential of the electric vehicle park for the provision of balancing reserve in the German energy market. Each individual electric vehicle is modelled separately considering all relevant techno-economic restrictions by means of a bottom up mixed integer linear optimisation algorithm. The objective is to maximize the electric vehicles´ contribution margin in the context of Multi Market Operation considering the Day Ahead, the Intraday and the Balancing Reserve Markets at the same time. The economic benefits obtained with this approach significantly exceed the margin calculated in earlier top-down aggregation models. The value of different strategies and markets is assessed to identify the most beneficial options for electric vehicles. The findings presented suggest the possibility of favourable economics for balancing reserve services based on electric vehicles, which could create a positive momentum for electric vehicle uptake in Germany.