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A V2G facility has the potential to reduce losses and loading in the power distribution network, thereby effecting savings and an increase in the generator, line and substation capacity for additional loading. In this paper, economic models are developed to compute the amount of economic incentives accruable from the penetration of V2G into the distribution network subject to two potential benefits of V2G: released generation capacity and reduced energy losses. The developed models were tested using IEEE test systems. Results from the test systems reveal that operational choice affects economic incentives. Hence, further analytical expression was developed to model operational formulation that will lead to economic incentives. This principal model was formulated to indicate the manner in which economic incentives can be impacted by decision variables, namely: loading pattern, V2G location and capacity injection.  More than 95% released generation capacity was obtained.  In addition, $37,775/year of economic incentive due to reduced power losses in the IEEE 123 Node test Feeder was observed. The results from the principal model showed that V2G promises significant economic incentives. It may be concluded, based on the results obtained, that proper system studies are necessary at the planning stage before installing a V2G facility.

Economic Justification for a V2G Facility in a Radial Distribution Network