Integration of Electric Vehicles into Local Flexibility Markets - A Case Study of Electric Vehicle Aggregator Participation on a Swedish Local Flexibility Market

Abstract

Abstract Electric vehicles (EVs) are becoming increasingly widespread, transforming energy systems and presenting new opportunities and challenges. Beyond transportation, EVs can provide valuable services to the grid. Local flexibility markets (LFMs) allow electricity consumers and producers in specific regions to offer products that support local grid operation. This thesis explores the potential for EV integration in LFMs by identifying and reviewing operating European markets. The review finds that aggregated EV fleets are technically capable of participating in all studied markets. Additionally, a retrospective case study simulates EV aggregator participation in the Swedish LFM Effekthandel Väst during January 2025. Using a mixed-integer linear programming (MILP) model, the study minimizes charging costs for a fleet of 588 EVs under different scenarios. Results show significant cost reductions with V2G, particularly through a long-term availability contract, reducing cost by 56%. Without V2G, a capacity limitation contract offers the highest savings, reducing costs by up to 28%. In conclusion, the viability for EVs to participate in LFMs is greatly increased when bi-directional charging capabilities are available.