Joint optimisation of arbitrage profits and battery life degradation for grid storage application of battery electric vehicles

To meet European decarbonisation targets by 2050, the electrification of the transport sector is mandatory. Most electric vehicles rely on lithium-ion batteries, because they have a higher energy/power density and longer life span compared to other practical batteries such as zinc-carbon batteries. Electric vehicles can thus provide energy storage to support the system integration of generation from highly variable renewable sources, such as wind and photovoltaics (PV). However, charging/discharging causes batteries to degradate progressively with reduced capacity.

In this study, we investigate the impact of the joint optimisation of arbitrage revenue and battery degradation of electric vehicle batteries in a simplified setting, where historical prices allow for market participation of battery electric vehicle owners.

It is shown that the joint optimisation of both leads to stronger gains then the sum of both optimisation strategies and that including battery degradation into the model avoids state of charges close to the maximum at times. It can be concluded that degradation is an important aspect to consider in power system models, which incorporate any kind of lithium-ion battery storage. (paper)