A Profitable Business Model for Electric Vehicle Fleet Owners

Fleet owners, as active participants in the decentralized energy grid, are interested in offering mobility services to individual customers, while providing the grid with balancing possibilities. We present a business model for the fleet owners of Electric Vehicles (EV) and prove that EVs adoption is beneficial both for the owner and the grid itself. The fleet owner’s main objective is to benefit from the difference between demand and intermittent supply (from renewable energy sources), employing the Vehicle to Grid (V2G) concept. The core idea is based on the fleet owner’s decision for charging the EVs during off peak hours and selling energy on the wholesale market during peak hours. This behavior leads to significant profits for the fleet and improvements in social welfare owner if the buying and selling decisions are made properly. The impact of a large quantity of EVs on the electricity market is accounted for. We present a charging and discharging algorithm that converts the traditional energy consumer to an active prosumer, while at the same time yields significant profits for the fleet owners. Apart from the profitability for fleet owners, we show the positive impact of the proposed algorithm on the energy prices, which leads to social welfare improvement.