A cost-benefit analysis of V2G electric vehicles supporting peak shaving in Shanghai

The costs and benefits of the participants including electric vehicle users, power grid companies and power plants were analyzed when four brands of electric vehicles participated in V2G peak shaving service in Shanghai. Sensitivity analysis was conducted to determine the key parameters that affected the costs and benefits of electric vehicle users and power grid companies. The results show that the total net profit of V2G services is greater than zero under the appropriate set of parameters. The net incomes of electric vehicles users are greater than zero in V2G peak shaving services when the peak price of electricity fed into the grid is more than three times the valley price. The lower the cost of electric vehicle battery, the more the net income of single user. The net incomes of power grid companies are always very negative and the higher the peak shaving load, the greater the net loss of the power company. The benefits of power plants are the biggest among three participants and are far greater than those of electric vehicle users. A fair market distribution mechanism of V2G profits should be built among three participants in order to promote the healthy development of V2G applications.