Plugging into Profit: An Economic Analysis of Electric Vehicle Participation in Frequency Regulation in India

To tackle climate change, there is a global effort to decarbonize different energy carriers, which includes electrification of the transportation sector. The increasing penetration of Electric Vehicle (EV) on roadways has led to extensive research and development around EVs. EVs, like most other personal vehicles, are typically parked for approximately 80% of their operational life, providing a significant opportunity to harness their batteries for essential grid support services, particularly frequency regulation (FR). This paper conducts a comprehensive profit analysis tailored to the city of New Delhi in India. Its objective is to elucidate the two-fold benefits of incorporating EVs for frequency regulation and establishing a revenue stream for individual EV owners. The study features the potential economic viability and technical advantages of integrating EVs into the broader energy landscape. The comprehensive analysis suggests a substantial profit for EV users. This substantial financial incentive encourages active participation in FR services, providing an economically viable strategy for the grid operator to address and mitigate frequency deviations.