Periodic Reporting for period 1 - V2Market (VALORISING ENERGY EFFICIENCY AND FLEXIBILITY AT DEMAND-SIDE USING VEHICLE TO GRID (V2G) AND VEHICLE TO BUILDING (V2B) TECHNOLOGY)
Okres sprawozdawczy: 2021-09-01 do 2023-02-28
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 puts 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 (DSO, TSO, BRP).
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).
In addition, V2Market is making progress in the development of the market conditions of V2G.
V2Market gathers and help 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 is being further developed (including viability studies for different services, contract standardisation, etc.), as key facilitator of flexibility and EE transactions.
The General Objective of the project is to develop the market framework conditions for mainstreaming V2G and V2B services into the Flexibility and Energy Efficiency (EE) market as a means to:
• Incorporate Electric Vehicles (EV) in the electricity system as storage and flexibility capacity.
• Offer new revenue streams for EE and flexibility services for the vehicle owners.
• Enable the large deployment of EV in a way that facilitates grid management and EE.
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).
In addition, V2Market is making progress in the development of the market conditions of V2G.
V2Market gathers and help 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 is being further developed (including viability studies for different services, contract standardisation, etc.), as key facilitator of flexibility and EE transactions.
The General Objective of the project is to develop the market framework conditions for mainstreaming V2G and V2B services into the Flexibility and Energy Efficiency (EE) market as a means to:
• Incorporate Electric Vehicles (EV) in the electricity system as storage and flexibility capacity.
• Offer new revenue streams for EE and flexibility services for the vehicle owners.
• Enable the large deployment of EV in a way that facilitates grid management and EE.
The first step was focused on performing a comprehensive Market study. The business case for V2G have been tailored considering existing examples and a detailed SWOT analysis with the experts from the V2Market consortium have been done to prepare the market analysis.
Interviews and focus groups to Spanish and European representatives of target groups have been performed to gather detailed information and opinions from all relevant stakeholders.
Key elements have been identified from each target group and value propositions have been designed for each of them.
After this, the consortium has performed an exhaustive analysis of the electricity markets and the potential of V2G, more specifically:
• Key electricity market conditions for the deployment of the V2G and its potential for integrating V2G.
• Analysis of the characteristics and potential of flexibility and local markets for V2G
• Conclusions, recommendations, and potential business models for V2G from the electricity market perspective.
The third step was to perform viability studies for V2G:
o An economic viability study of different electricity and battery price scenarios for EV owners has been delivered.
o A design of the servitisation scheme has been elaborated and delivered.
o The EPC contract has been explored and two separate M&V approaches have been proposed.
o The economic viability scheme showed that the servitization model would enhance EV deployment with V2G capability, this being due to the lower Total Cost of Ownership and lower upfront cost for the end-user.
o Business cases and economic viability studies for relevant V2G stakeholders (individual EV owners, private and public fleet owners, aggregators) has been delivered and transformed in a set of infographics.
Several activities for the development of the contractual arrangements between the different parties in a V2G commercial relationship have been started, and will continue during the next project period. The analysis of the key aspects and the legal determinants for the elaboration of standardised contract elements have been started.
Some progress has been made in the definition of the pilot.
Interviews and focus groups to Spanish and European representatives of target groups have been performed to gather detailed information and opinions from all relevant stakeholders.
Key elements have been identified from each target group and value propositions have been designed for each of them.
After this, the consortium has performed an exhaustive analysis of the electricity markets and the potential of V2G, more specifically:
• Key electricity market conditions for the deployment of the V2G and its potential for integrating V2G.
• Analysis of the characteristics and potential of flexibility and local markets for V2G
• Conclusions, recommendations, and potential business models for V2G from the electricity market perspective.
The third step was to perform viability studies for V2G:
o An economic viability study of different electricity and battery price scenarios for EV owners has been delivered.
o A design of the servitisation scheme has been elaborated and delivered.
o The EPC contract has been explored and two separate M&V approaches have been proposed.
o The economic viability scheme showed that the servitization model would enhance EV deployment with V2G capability, this being due to the lower Total Cost of Ownership and lower upfront cost for the end-user.
o Business cases and economic viability studies for relevant V2G stakeholders (individual EV owners, private and public fleet owners, aggregators) has been delivered and transformed in a set of infographics.
Several activities for the development of the contractual arrangements between the different parties in a V2G commercial relationship have been started, and will continue during the next project period. The analysis of the key aspects and the legal determinants for the elaboration of standardised contract elements have been started.
Some progress has been made in the definition of the pilot.
V2Market is making a significant progress in the definition of the market conditions for V2G. Even considering that the work has been done in a framework of lacking a legal regulatory environment, several market aspects are being studied and the project is providing more clarity on the V2X services for all the market participants.
More specifically, some progress made beyond the State of the art is:
• The development of a value proposition canvas for each of the 10 targeted groups, detailing the gain creators and pain relievers for each group, as well as the potential services that can respond to their needs.
• The analysis of the possibilities to integrate V2G in the current electricity markets, based on the study of the different markets, and the key elements to be considered for the different business model elements.
• The development of the servitisation business model, concretised as the Battery-as-a-Service (BaaS) model.
• The production of 1 standardised hybrid EPC and servitisation contract (considering the Spanish regulatory framework), where the aggregator keeps the ownership of the EV battery and provides the energy as a service to EV owner, whilst incorporating the V2G revenue streams.
• The development of 6 economic viability studies in 6 different scenarios:electricity price stability with stability of EV battery prices (1), and with decrease of battery price (2), electricity price increase with stability of EV battery prices (3), and with decrease of battery price (4), and decrease of electricity prices, with stability of EV battery prices (5), and with decrease of battery price (6)
• The development of an EPC re-defined framework to include V2G and flexibility services in a broader energy efficiency scheme.
In the second half of the project, diferent contractual guidelines for the diferent stakeholders in the value chain are being developed.
Also, one of the main expected results will issue from the implementation of the pilot, where the following aspects that will help refine the market conditions of V2X will be tested:
1. The communication between the 3 main elements: EV-charger-aggregator software-electricity market,
2. The acceptance of the V2G among the end users (fleet owners, their users, and the individual owners with PV)
3. The potentiality of the flexibility services that the 2 profiles tested would offer to the Spanish market (public fleet owners, and individual residential owners. This is expected to give policymakers and market actors an idea of the V2G market potential and develop their policies/plans according to it.
4. The end-user patterns (which will provide a better understanding on potential services or incentives to offer).
Finally, one of the main outcomes of the V2Market project so far is the knowkledge sharing between the partners: all the outcomes, conclusions and recommendations issue from the discussions of all these representatives of the V2G value chain working together and putting their knowledge at disposal of the design of a future successful V2G market.
More specifically, some progress made beyond the State of the art is:
• The development of a value proposition canvas for each of the 10 targeted groups, detailing the gain creators and pain relievers for each group, as well as the potential services that can respond to their needs.
• The analysis of the possibilities to integrate V2G in the current electricity markets, based on the study of the different markets, and the key elements to be considered for the different business model elements.
• The development of the servitisation business model, concretised as the Battery-as-a-Service (BaaS) model.
• The production of 1 standardised hybrid EPC and servitisation contract (considering the Spanish regulatory framework), where the aggregator keeps the ownership of the EV battery and provides the energy as a service to EV owner, whilst incorporating the V2G revenue streams.
• The development of 6 economic viability studies in 6 different scenarios:electricity price stability with stability of EV battery prices (1), and with decrease of battery price (2), electricity price increase with stability of EV battery prices (3), and with decrease of battery price (4), and decrease of electricity prices, with stability of EV battery prices (5), and with decrease of battery price (6)
• The development of an EPC re-defined framework to include V2G and flexibility services in a broader energy efficiency scheme.
In the second half of the project, diferent contractual guidelines for the diferent stakeholders in the value chain are being developed.
Also, one of the main expected results will issue from the implementation of the pilot, where the following aspects that will help refine the market conditions of V2X will be tested:
1. The communication between the 3 main elements: EV-charger-aggregator software-electricity market,
2. The acceptance of the V2G among the end users (fleet owners, their users, and the individual owners with PV)
3. The potentiality of the flexibility services that the 2 profiles tested would offer to the Spanish market (public fleet owners, and individual residential owners. This is expected to give policymakers and market actors an idea of the V2G market potential and develop their policies/plans according to it.
4. The end-user patterns (which will provide a better understanding on potential services or incentives to offer).
Finally, one of the main outcomes of the V2Market project so far is the knowkledge sharing between the partners: all the outcomes, conclusions and recommendations issue from the discussions of all these representatives of the V2G value chain working together and putting their knowledge at disposal of the design of a future successful V2G market.