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Economic feasibility and grid benefits of vehicle-to-grid in rental electric vehicle industry in tourism spots

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Listed:
  • Lee, Wonjong
  • Kim, Euncheol
  • Han, Jonghyeok
  • Seong, Wooje
  • Koo, Yoonmo

Abstract

Electric vehicles (EVs) are being rapidly adopted across various applications, including personal vehicles, public transit, delivery trucks, car-sharing, and rent-a-car, to decarbonize the transportation sector. Meanwhile, vehicle-to-grid (V2G), which allows EVs to interact with power grid, is regarded as a promising solution for integrating renewable energy (RE) and EVs into the grid. While V2G applications within different types of EVs have been extensively studied, the V2G utilizing idle rental EVs in tourist destinations has received limited attention despite its significant potential. This study evaluates the economic feasibility and grid benefits of V2G using idle rental EVs on Jeju Island, South Korea. To do so, this study models the optimal operation of rent-a-car companies alongside the market-clearing process of system operator as a bi-level optimization problem. Using the KKT optimality conditions and the strong duality theorem, the bi-level optimization problem is reformulated as a single-level optimization problem. The results shows that with a near-optimum configuration (15 MW solar PV, 65 MW V2G-capable chargers), idle rental EVs can generate annual profits of 6,324 thousand USD, even after accounting for investment and battery degradation costs. Moreover, the V2G of rental EVs reduced system costs by 5.25 %, RE curtailments by 5.02 %, and GHG emissions by 4.05 %. This study highlights the substantial co-benefits of V2G for both rental companies and the grid, emphasizing the synergistic effectiveness of transportation decarbonization for the power sector.

Suggested Citation

  • Lee, Wonjong & Kim, Euncheol & Han, Jonghyeok & Seong, Wooje & Koo, Yoonmo, 2025. "Economic feasibility and grid benefits of vehicle-to-grid in rental electric vehicle industry in tourism spots," Energy, Elsevier, vol. 335(C).
    • Handle: RePEc:eee:energy:v:335:y:2025:i:c:s0360544225036965
    DOI: 10.1016/j.energy.2025.138054
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