Analyzing the impact of battery technical performance and driving conditions on the overall economic feasibility of a Vehicle-to-Grid (V2G) system implemented in the Japan electric power exchange (JEPX) market

• Comprehensive techno-economic feasibility of V2G systems is provided. • An integrated analytical approach that consists of both theoretical and experimental frameworks is presented. • An in-depth economic evaluation of the proposed V2G is conducted in the Japan Electric Power Exchange (JEPX) market. • A total savings of 352,000 yen over the six-year lifespan of the battery for the EV owner is estimated. Vehicle-to-grid (V2G) technology enables electric vehicles to communicate with the power grid during peak times, enhancing grid stability and efficiency, lowering carbon emissions, and providing economic benefits to Electric Vehicle (EV) owners through energy trading. This research focuses on the techno-economic feasibility of V2G systems by developing an integrated simulation model and experimental validation framework which not only evaluates the impact of battery energy management and charging infrastructure on V2G system performance but also a detailed economic analysis of V2G applications assessing the financial benefits gained from trading the V2G system with the grid during peak periods, using real-time electricity tariffs and demand data obtained from the Japan Electric Power Exchange (JEPX) market. Since the profitability of the V2G program is closely linked to an EV’s fuel efficiency under specific driving conditions, this study introduces a novel approach by analyzing the impact of driving strategies and varying traffic conditions. Using a Human-in-the-Loop (HiL) driving simulator, three distinct driving cycles, namely, suburban, urban, and highway, are examined to assess their influence on V2G performance. The results reveal that V2G participation is a function of the selected drive cycle, household electricity demand, and energy tariff of the utility market, and an EV user can earn a total savings of 352,212 yen under coordinated V2G participation (Optimal scenario) compared to 344,508 yen under un-coordinated V2G participation (Base scenario) over the six-year lifespan of typical EV battery including residential energy savings during peak hours and off-peak hours respectively with (3 Sub-Urban, 2 Urban, and 2 Highway drive cycles a week) in total 297 working days/year.