Analysis of vehicle-to-grid economy based on sustainable development grounded in game theory

Abstract

In a vehicle-to-grid (V2G) peaking system based on coordination games, ultimate goal realized a positive total net return in V2G operations, while ensuring that the interests of all stakeholders reached a balanced equilibrium. This study examined the cost and benefit dynamics of BYD (Build Your Dreams) electric vehicles, encompassing electric vehicle users, power grid companies, and power plants, before and after participating in V2G peak load balancing services. Pre-game analysis revealed that power plants led in terms of revenue, significantly surpassing electric vehicle users, whereas grid companies incurred negative net income. An increase in peak load exacerbated the power company’s net loss, posing a significant challenge to V2G’s sustainable development. However, post-game, a cooperative alliance between the power grid company and car users was forged through financial means, with the power grid company and power plants offering invaluable data support through collaborative efforts. The disparity between optimized peak and base load generation costs narrowed to 79% of pre-optimization levels, with a 3.14% reduction in carbon emissions. Furthermore, the implementation of this collaboration strategy can result in a maximum reduction of 9% in the power grid company’s losses and an enhancement of 6.7% in the net revenue of the entire V2G peak-shaving system. Consequently, this strategy significantly promotes the development of V2G operations.