V2X is an umbrella term to explain the use of Electric Vehicle (EV) batteries to provide energy services and derive additional value from the battery asset during times of non-use. V2X services aim to generate revenue from the battery asset through dynamic or bi-directional charge control to provide benefits to the electric grid or to reduce/flatten/shift peak energy consumption of buildings and can be classified in the following operating modes: · Vehicle-to-Grid (V2G): Using an EV battery to interact with/provide value to the electric grid · Vehicle-to Building (V2B): Operating EV batteries to optimize building energy consumption · Vehicle-to-Home (V2H): Optimizing home energy consumption or as emergency back-up power · Vehicle-to-Load (V2L): Any other instance of an EV battery providing energy to a load

1. ISGAN –
International Smart Grid
Action Network
Andrew W. Thompson
PhD Candidate Energy Economics
University of Paris-Saclay
April 2019

2. ISGAN in a Nutshell
Created under the auspices of:
the Implementing
Agreement for a
Co-operative
Programme on Smart
Grids
1/8/2018 ISGAN IN A NUTSHELL 2
Strategic platform to support high-level government
knowledge transfer and action for the accelerated
development and deployment of smarter, cleaner
electricity grids around the world
International Smart Grid Action Network is
the only global government-to-
government forum on smart grids.
an initiative of the
Clean Energy
Ministerial (CEM)

3. ISGAN’s worldwide presence
1/8/2018 ISGAN, PRESENTATION TITLE 3

4. Value proposition
1/8/2018 ISGAN IN A NUTSHELL
4
ISGAN
Conference
presentations
Policy
briefs
Technology
briefs
Technical
papers
Discussion
papers
Webinars
Casebooks
Workshops
Broad international
expert network
Knowledge sharing,
technical accistance,
project coordination
Global, regional &
national policy support
Strategic partnerships
IEA, CEM, GSGF,
Mission Innovation, etc.

5. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 5
Introduction
Vehicle-to-Everything (V2X) Energy Services
V2X and Battery Degradation
V2X Regulatory Issues
Overview

6. Introduction
1/8/2018 ISGAN STANDARD PRESENTATION 6
Image Source: IEA Global EV Outlook 2018
Image Source: IEA Global EV Outlook 2018
Global EV Stock

7. Introduction
1/8/2018 ISGAN STANDARD PRESENTATION 7
Global EV Projected Growth to 2030
Images Source: IEA Global EV Outlook 2018

8. Introduction
1/8/2018 ISGAN STANDARD PRESENTATION 8
Images Source: IEA Global EV Outlook 2018
Global EV Charger Stock
Total Electric Vehicle Charger Stock
Public Electric Vehicle Charger Breakdown

9. Introduction
1/8/2018 ISGAN STANDARD PRESENTATION 9
Image Source: IEA Global EV Outlook 2018
Global EV Electricity Consumption Growth

10. Introduction
1/8/2018 ISGAN STANDARD PRESENTATION 10
Grid Impacts of EVs
Images Source: IEA Global EV Outlook 2018

11. Introduction
1/8/2018 11
“Duck Curve” – Grid impact from increasing solar energy
Images Source: California ISO / Jordan Wirfs-Brock: http://insideenergy.org/2014/10/02/ie-questions-why-is-california-trying-to-behead-the-duck/

12. Introduction
1/8/2018 ISGAN STANDARD PRESENTATION 12
Summary
Over 3 Million EVs on the road today, 40% in China
Sustained Exponential Growth is expected = 130 – 220 Million EVs by 2030
Significant portion of electricity demand increase largely driven by EVs
EV charging, if left unmanaged, will worsen peak electricity demand

13. Vehicle-to-Grid (V2X) Energy Services
1/8/2018 ISGAN STANDARD PRESENTATION 13

14. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 14
Vehicle-to-Everything (V2X) is an umbrella term to explain the use of Electric Vehicle (EV) batteries to provide
energy services and derive additional value from the battery asset during times of non-use
V2X services aim to generate revenue from the battery asset through dynamic or bi-directional charge control to
provide benefits to the electric grid or to reduce/flatten/shift peak energy consumption of buildings and homes
V2X can be classified in the following operating modes:
Vehicle-to-Grid (V2G): Using an EV battery to interact with/provide value to the electric grid
Vehicle-to-Building (V2B): Operating EV batteries to optimize building energy consumption
Vehicle-to-Home (V2H): Optimizing home energy consumption or using EVs as emergency back-up power
Vehicle-to-Load (V2L): Any other instance of an EV battery providing energy to a load
V2X Definition

15. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 15
V2X Topology Explained
Image Source: C. Liu, K.T. Chau, D. Wu, S. Gao, Opportunities and challenges of vehicle-to-home, vehicle-to-vehicle, and vehicle-to-grid technologies, Proc. IEEE
101 (2013) 2409–2427, http://dx.doi.org/10.1109/JPROC.2013.2271951.

16. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 16
V2X Identified Value Streams: Lazard’s Levelized Cost of Storage (LCOS)
Image Source: Lazard’s Levelized Cost of Storage (LCOS) Version 4.0

17. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 17
Lazard’s Levelized Cost of Storage (LCOS)
Image Source: Lazard’s Levelized Cost of Storage (LCOS) Version 4.0

18. Vehicle-to-Everything (V2X) Energy
Services
• Battery Storage Valuation Reports
• Lazard’s Levelized Cost of Storage Analysis (LCOS) v 3.0
• Rocky Mountain Institute (RMI): The Economics of Battery Energy
Storage
• Electrification Reports
• Rocky Mountain Institute (RMI)
• The Brattle Group
• NREL
• The Regulatory Assistance Project
• Electric Water/Heating Reports
• RMI: The Economics of Electrifying Buildings
• Brattle: The Hidden Battery Opportunities in Electric Water Heating
1/8/2018 ISGAN STANDARD PRESENTATION 18
Meta-Analysis Sources
$/KW PER YEAR

19. Vehicle-to-Everything (V2X) Energy
Services
Wholesale
Frequency Regulation
Resource Adequacy
Utility
Distribution Deferral
Transmission Deferral
Customer (Residential, Commercial, Industrial)
Emergency Back-up
Wholesale
Demand Response (Wholesale)
Energy Arbitrage
Spin/Non-Spin Reserves
Utility
Transmission Congestion Relief
Demand Response (Utility)
Customer (Residential, Commercial, Industrial)
Bill Management
Emergency Back-up
1/8/2018 ISGAN STANDARD PRESENTATION 19
Power/Capacity Based Services Energy Based Services

20. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 20

21. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 21
Image Source: W. Kempton et al “A Test of Vehicle-to-Grid ( V2G ) for Energy Storage and Frequency Regulation in the PJM
System,” 2009.
V2G Test

22. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 22
V2G Pilot Project
Image Source: D. Black et al, Lawrence Berkeley National Labs, CEC VGI Workshop 2014

23. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 23
V2G Pilot Project
Image Source: D. Black et al, Lawrence Berkeley National Labs, CEC VGI Workshop 2014

24. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 24
V2X Summary
Operation depends on topology employed (V2G, V2B, etc)
and underlying energy service(s) provided:
Stacked revenue streams important
RA/FR
Bill Management
Trans/Dis Deferral
Key distinction between Power and Energy Services
Vehicle-to-Grid (V2G): Aggregators bidding in markets
Vehicle-to-Building (V2B): Fleets of vehicles co-optimized with rooftop solar and DER
Vehicle-to-Home (V2H): Using vehicle as back-up generator or integrated with solar and home energy system
Vehicle-to-Load (V2L): Likely to be used in rural/emergency situations
$/KW PER
YEAR

25. V2X and Battery Degradation
1/8/2018 ISGAN STANDARD PRESENTATION 25

26. Li-ion Battery Degradation
1/8/2018 26Image Source: A.W. Thompson, Economic implications of lithium ion battery degradation for Vehicle-to-Grid (V2X) services, J.
Power Sources. 396 (2018) 691–709. doi:10.1016/j.jpowsour.2018.06.053.

27. Li-ion Battery Degradation
1/8/2018 ISGAN STANDARD PRESENTATION 27
Calendar vs Cycling Aging
Image Source: Wang, J., et. al. “Degradation of lithium ion batteries employing graphite negatives and nickel cobalt manganese oxide þ spinel manganese oxide
positives: Part 1, aging mechanisms and life estimation.” J. Power Sources 269, 937–948.

28. V2X to Minimize Battery Degradation
1/8/2018 ISGAN STANDARD PRESENTATION 28
Images Source: Uddin, K., Jackson, T., Widanage, W.D., Chouchelamane, G., Jennings, P.A., Marco, J., 2017. On the possibility of extending the lifetime of lithium-ion
batteries through optimal V2G facilitated by an integrated vehicle and smart-grid system. Energy 133, 710–722. doi:10.1016/j.energy.2017.04.116

29. V2X to Minimize Battery Degradation
1/8/2018 ISGAN STANDARD PRESENTATION 29
Images Source: Uddin, K., Jackson, T., Widanage, W.D., Chouchelamane, G., Jennings, P.A., Marco, J., 2017. On the possibility of extending the lifetime of lithium-
ion batteries through optimal V2G facilitated by an integrated vehicle and smart-grid system. Energy 133, 710–722.

30. V2X to Minimize Battery Degradation
1/8/2018 ISGAN STANDARD PRESENTATION 30
Images Source: Hoke, A., Brissette, A., Pratt, A., Smith, K., 2011a. Electric Vehicle Charge Optimization Including Effects of Lithium-Ion Battery Degradation.

31. V2X to Minimize Battery Degradation
1/8/2018 ISGAN STANDARD PRESENTATION 31
Image Source: Hoke, A., Brissette, A., Pratt, A., Smith, K., 2011a. Electric Vehicle Charge Optimization Including Effects of Lithium-Ion Battery Degradation.

32. Vehicle-to-Everything (V2X) Energy
Services
1/8/2018 ISGAN STANDARD PRESENTATION 32
V2X and Battery Degradation Summary
Economic valuation of V2X (and BESS) cannot ignore physical reality
Calendar Aging is most prominent factor in battery degradation
The Temperature and SOC at which a battery sits
Semi-Empirical Electrochemical Battery models are our best estimation method
Cost prohibitive and time consuming to perform tests over 8-10 year EOL
Should be expanded to allow for better estimation of V2X impact on battery life
V2X is more valuable than market revenue generated
Additional value through battery life prolongation
Additional value through optimized charging algorithms which incorporate V2X
Battery chemistry may dictate cost-effective service provision

33. V2X Regulatory Issues
1/8/2018 ISGAN STANDARD PRESENTATION 33

34. V2X Regulatory Issues
1/8/2018 ISGAN STANDARD PRESENTATION 34
Regulatory Analysis Framework
Image Source: O. Borne, K. Korte, Y. Perez, M. Petit, A. Purkus, Barriers to entry in frequency-regulation services markets: Review of the status quo and options for
improvements, Renew. Sustain. Energy Rev. 81 (2018) 605–614. doi:10.1016/j.rser.2017.08.052.

35. V2X Regulatory Issues
1/8/2018 ISGAN STANDARD PRESENTATION 35
Module A: Market rules of aggregation
Technical definitions of aggregation
Who is allowed to aggregate?
Are there preference to certain voltage connection points?
What are performance requirements?
Interoperability between DSOs
Are there barriers to new entry?
Can aggregation happen between DSOs?
Aggregation Method
Telemetry Aggregation
Energy dispatched by Aggregator
Financial Aggregation
Energy is dispatched by DSO

36. V2X Regulatory Issues
1/8/2018 ISGAN STANDARD PRESENTATION 36
Module B: Rules defining energy products
Minimum Bid Size
100 kW – 5 MW
Key consideration for V2X viability
Time Duration
Period of time that resource must be available
If too long, V2X provision will be difficult
Distance to Real-Time Reservation
How far in advance must the product be procured?
Product Symmetry
Separation of Upwards and Downwards Reserves?
Symmetrical offer of Up/downwards reserves

37. V2X Regulatory Issues
1/8/2018 ISGAN STANDARD PRESENTATION 37
Module C: Rules for remuneration
Payment Schemes
Regulated Tariffs
Pay-as-Bid
Uniform pricing
Mandatory vs Voluntary
Performance bonus
Yes or No?
If resource offers additional flexibility or faster response time this constitutes added value

38. Conclusions
Significant portion of electricity demand increase driven by EVs
Sustained Exponential Growth is expected = 130 – 220 Million EVs by 2030
Need to manage charging
Vehicle-to-Everything (V2X) is an umbrella term to explain the use of
Electric Vehicle (EV) batteries to provide energy services and derive
additional value from the battery asset during times of non-use
New monetization opportunities
Resource Adequacy
Frequency Regulation
Trans/Distribution Deferral
Emergency Back up power
V2X can be used to improve battery lifetime
Significant regulatory barriers still persist
Minimum bidding requirements (100 kW – 10 MW)
Inability to provide reserves in one direction
High “participation” fees (eg 1,000 $/month)
Outright preclusion of V2X or Aggregators
V2X economics highly variable
Locational dependency
Stacked value streams likely required
How to realize?
Which value streams can be captured?
Which values steams concurrently?
Blended portfolio of costs/revenues
1/8/2018 ISGAN STANDARD PRESENTATION 38

39. References
1/8/2018 ISGAN STANDARD PRESENTATION 39
Black, D., 2014. U . S . Department of Defense Vehicle-to-Grid Demonstrations in California.
Borne, O., Perez, Y., Petit, M., 2018. Market integration or bids granularity to enhance fl exibility provision by batteries of electric vehicles. Energy Policy 119, 140–148. doi:10.1016/j.enpol.2018.04.019
Denholm, P., Jorgenson, J., Jenkin, T., Palchak, D., Kirby, B., Malley, M.O., Hummon, M., Ma, O., 2013. The Value of Energy Storage for Grid Applications. Natl. Renew. Energy Lab. 37. doi:NREL/TP -6A20- 58465
Fitzgerald, G., Mandel, J., Morris, J., Hervé, T., 2015. The Economics of Battery Energy Storage.
Hledik, R., Chang, J., Lueken, R., 2016. The Hidden Battery - Opportunities in Electric Water Heating.
Hledik, R., Weiss, J., 2019. Increasing Electric Vehicle Fast Charging Deployment ELECTRICITY RATE DESIGN AND SITE.
Hoke, A., Brissette, A., Pratt, A., Smith, K., 2011. Electric Vehicle Charge Optimization Including Effects of Lithium-Ion Battery Degradation, in: IEEE Vehicle Power and Propulsion Conference. doi:10.1109/VPPC.2011.6043046
International Energy Agency, 2018. Global EV Outlook 2018.
International Energy Agency, 2017. Global EV Outlook 2017: Two million and counting, IEA Publications. doi:10.1787/9789264278882-en
Kempton, W., Udo, V., Huber, K., Komara, K., Letendre, S., Baker, S., Brunner, D., Pearre, N., 2009. A Test of Vehicle-to-Grid ( V2G ) for Energy Storage and Frequency Regulation in the PJM System, University of Delaware. Newark, Delaware.
Lazard, 2018. Lazard’s Levelized Cost of Storage Analysis — Version 4.0.
Lazard, 2017. Lazard’s Levelized Cost of Storage Analysis — Version 3.0. doi:10.1017/CBO9781107415324.004
Liu, C., Chau, K.T., Wu, D., Gao, S., 2013. Opportunities and challenges of vehicle-to-home, vehicle-to-vehicle, and vehicle-to-grid technologies. Proc. IEEE 101, 2409–2427. doi:10.1109/JPROC.2013.2271951
Pi, S.S., Black, D., Coignard, J., Wang, D., 2016. Modeling and Control Software Tools to Support V2G Integration Overview Timeline 1–13.
RMI, 2015. Detailed Overview of Services Technical Appendix a : Detailed Overview of Services.
Smith, K., Kim, G., Markel, T., Pesaran, A., 2010. Design of Electric Drive Vehicle Batteries for Long Life and Low Cost, in: IEEE 2010 Workshop on Accelerated Stress Testing and Reliability. Denver, Colorado, pp. 1–29. doi:NREL/PR-5400-48933
Steward, D., 2017. Critical Elements of Vehicle-to- Grid ( V2G ) Economics.
Thompson, A.W., 2018. Economic implications of lithium ion battery degradation for Vehicle-to-Grid (V2X) services. J. Power Sources 396, 691–709. doi:10.1016/j.jpowsour.2018.06.053
Uddin, K., Jackson, T., Widanage, W.D., Chouchelamane, G., Jennings, P.A., Marco, J., 2017. On the possibility of extending the lifetime of lithium-ion batteries through optimal V2G facilitated by an integrated vehicle and smart-grid system. Energy 133, 710–722.
doi:10.1016/j.energy.2017.04.116
Wang, J., Liu, P., Hicks-Garner, J., Sherman, E., Soukiazian, S., Verbrugge, M., Tataria, H., Musser, J., Finamore, P., 2011. Cycle-life model for graphite-LiFePO4 cells. J. Power Sources 196, 3942–3948. doi:10.1016/j.jpowsour.2010.11.134

40. Thank you
Andrew W. Thompson
athompson@lbl.gov