VALORISING ENERGY EFFICIENCY AND FLEXIBILITY AT DEMAND-SIDE USING VEHICLE TO GRID (V2G) AND VEHICLE TO BUILDING (V2B) TECHNOLOGY

Project Information

V2Market

Grant agreement ID: 101033686

DOI

10.3030/101033686

Project closed

EC signature date 10 May 2021

Start date 1 September 2021

End date 31 August 2024

Funded under

• SOCIETAL CHALLENGES - Secure, clean and efficient energy

Total cost

€ 1 999 858,75

EU contribution

€ 1 999 857,00

Coordinated by

ASOCIACION ECOSERVEIS
Spain

Periodic Reporting for period 2 - V2Market (VALORISING ENERGY EFFICIENCY AND FLEXIBILITY AT DEMAND-SIDE USING VEHICLE TO GRID (V2G) AND VEHICLE TO BUILDING (V2B) TECHNOLOGY)

Reporting period: 2023-03-01 to 2024-08-31

Summary of the context and overall objectives of the project

V2Market is an innovative service to incorporate the Electric Vehicles’ (EV) batteries into the electricity system as storage and flexibility capacity, using Vehicle-to-Grid (V2G) and Vehicle-to-Building (V2B) technology combined with energy efficiency (EE) and price forecasting ICT tools. V2Market put together all the relevant actors in the value chain to work on the definition of the role and the contractual arrangements of a new business model, the aggregator, and its potential trading options to integrate the V2G new revenue streams with the other key stakeholders: the end users/EV owners, and the flexibility buyers.

V2Market tackles energy efficiency at different levels:
- Efficiency at the system level, by providing flexibility services to the grid.
- Efficiency at the building/end user level, by optimising energy management thanks to the incorporation of the EV battery, which will also facilitate an optimisation of the energy produced by local RES.
- Efficiency resulting from the substitution of older fossil-fuel based vehicles for electric vehicles.
- EV battery efficiency, making it an independent asset (as a major cost and more sensitive item that needs to be managed separately).

V2Market has gathered and helped converge innovative, successfully tested service elements which are well adapted to the needs of the electricity market (flexibility provision and grid services), and of the potential users. Also, the role of the independent aggregator has been further developed, as key facilitator of flexibility and EE transactions.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

V2Market, through a process of research and dialogue with the partners representing all the value chain for V2G services, and fostering dialogue with other key stakeholders, has unblocked several market aspects that will accelerate V2G acceptance and adoption among all the interested stakeholders: ESCOs, end users, independent aggregators, financial institutions, among others.The project has achieved its overall goal of developing market framework conditions for V2X:

A) Readiness of market actors. Several project outputs addressed the need of showcasing the potential of V2X services and facilitating the development of commercial strategies:
- An in depth market study has been put in place.
- A detailed electricity market analysis has been elaborated to identify the key opportunities for incorporating EVs in the electricity markets.
- Six economic viability studies for different scenarios have been performed to showcase the economic potential of the V2G services.
- Training materials have been produced to be used with the V2X end users.

B) Empirical data from onsite testing. Two pilots have been implemented (one in a public fleet and one with residential users). The pilots have tackled several aspects of the V2G deployment: acceptability, usability, technical feasibility, economic behaviour of the market actors when introducing local flexibility markets and their potential opportunities. The results have been included in a research paper, providing pilot first-hand experience from consortium partners. Also, through the pilot, the aggregator digital services with the electricity market platform have been integrated.

C) Business model for V2G/V2B. Several outputs have been created to facilitate the actual implementation of V2X services by market stakeholders, by shaping several instruments of its business model.
- Contractual guidelines and contractual templates have been elaborated for the relation between the aggregator and the end user, and for the aggregator and the Balance Responsible Party (BRP).
- A particular business model has been developed considering the concept of servitisation of mobility and the integration of V2G/V2B within the ESCO model.
- The template for an hybrid contract integrating servitisation into an EPC model has been produced.
- Templates and guidleines for tendering V2X services by the public administration.

D) Fostering the adoption of V2X among market actors. Considering the early stages of development of V2X services and regulation, and the current adoption of EVs, V2Market has put a lot of efforts into disseminating the concept and benefits of V2X, targeting the end users, the aggregators, and the electricity system, using different outputs:
- A policy paper detailing regulatory barriers and opportunities.
- Webinars targeting policy makers, potential aggregators, and the energy industry.
- Two guidelines explaining in an easy way the V2X concept (for end users and potential aggregators).
- Videos and infographics showcasing the V2G and servitisation concepts.
- An EU-level event in Brussels to disseminate results and foster debate.
- Participation in key sectorial interest groups.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

The incorporation of local flexibility markets into the electricity system will force the different actors to change their behaviours, and their relations will be re-structured. One key goal of the project was to better define the different parties’ roles in flexibility trading and support the adaptation of the different actors to the future development of flexibility markets. Also, it was intended to develop strategies to tackle the financial gap between the investment and operation in an internal combustion vehicle (ICV), an electric vehicle (EV), and a V2X capable EV in order to foster the demand of V2G capable EVs. Even considering that the work has been done in a framework of lacking a legal regulatory environment for V2X, several market aspects have been studied and V2Market has been able to provide more clarity on the V2X services for the market participants.

Key aspects achieved are:
- Value proposition canvas for 10 targeted groups.
- Analysis of the possibilities to integrate V2G in the current electricity markets, and the key elements to be considered for the different business model elements.
- Development of the servitisation business model.
- 1 standardised hybrid EPC and servitisation contract (considering the Spanish regulatory framework).
- 6 economic viability studies in 6 different scenarios, comparing the Total Cost of Ownership of an internal combustion car, an EV and a V2G capable EV.
- 1 EPC re-defined framework to include V2G and flexibility services in a broader energy efficiency scheme.
- A tendering template and guidelines for public authorities as key drivers of energy tranisiton to tender V2G.
- Contractual guidelines and templates for the relation aggregator-end user, and aggregator-DSO.
- Empirical data based on pilots for the participation of EVs in flexibility and wholesale markets, gathered in a research paper.
- Evaluation of the social acceptance of the V2G.
- Elaboration of policy recommendations to consider in future regulation of flexibility markets and aggregation.
- Many exploitable outputs to be used by potential aggregators to educate the general publc on the V2G concept and boost V2G acceptance and demand (guidelines, videos, infographics...)

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