On the road to grid stability - Using batteries in heavy vehicles and charging infrastructure as frequency reserves

Abstract

Background:
Climate change and increasing threats that come with it fosters a need for
changing from fossil sources of energy to renewable ones. Sweden aims to
have net zero greenhouse gas emissions by the year of 2045. One of the
sectors that need to take part in this shift towards fossil free energy is the
transport industry. Electrification of vehicles is an important part of this
shift. As a result, a large number of big batteries will be allocated within this
industry. Apart from fuelling vehicles, batteries have a potential to be used
for other purposes as well. Among others, batteries can be used as a
frequency reserve, providing support services to the power grid.
Purpose:
The purpose of this master thesis is to investigate possibilities for using
batteries in heavy vehicles and charging infrastructure at sites as frequency
reserves, to support the power grid, and to investigate what value that can be
created and obtained by these sites.
Research questions:
The research questions that this thesis aims to answer are the following:
● What actors within the transport industry have potential in delivering
frequency regulation services?
○ What is the potential in different segments of the market?
○ What are the obstacles and enablers for electrification of the
transport industry, and its possibility to provide support
services with batteries?

○ What is the maturity level of the technology and the market,
in particular in the relevant cases?
○ Which types of frequency regulation are most suitable for
above mentioned actors and their prerequisites?
● How can the market for frequency regulation services be identified
and characterised, and how can it be expected to develop during the
coming years?
● What gaps are there to fill for actors interested in engaging in the
market for support services?
Method:
The thesis was conducted as a case study in two steps, combining secondary
data and statistics with expert- and stakeholder interviews. The method of
the thesis takes on a descriptive and exploratory approach. First, the context
in which the study takes place is described. Thereafter, a brief exploration
and evaluation of a selection of potential cases was done. The evaluation led
to a choice of three user cases, overnight depot, logistics hub and solar park,
that were then further investigated, and analysed based on the research
questions and the theoretical framework.
Delimitations:
The investigation of the thesis is limited to Sweden, and the Swedish energy
system. The thesis only focuses on possibilities of providing frequency
regulation with energy reserves. A selection of cases is chosen for the
investigation, even though there might be potential in others as well.
Conclusion:
The thesis concludes that there is some potential in using batteries in heavy
vehicles and charging infrastructure at sites as frequency reserves, to
support the power grid. The most suitable types of frequency regulation that
can be provided by a battery was found to be FCR-D, FFR, and to some
extent FCR-N. Sites providing frequency regulation creates value in terms
of stability of the power grid, and additional revenues for the sites. The three
investigated cases all had both potential and some limitations to their ability
to provide frequency regulation.

The overnight depot, with either buses or trucks, has good potential with
regard to both aggregated capacity at the site, as well as available hours.
With electrification of the vehicle fleet, some transport companies have
found a need for increasing the utilisation rate of their electric trucks.
Increased operation hours lead to a loss of potential for providing frequency
regulation. For a logistics hub, the biggest potential for frequency regulation
was found in supporting infrastructure, and buffer batteries in particular.
The third case investigated a more holistic energy system, with a site that
combines solar power, with energy and charging for vehicles. Together,
these components give synergy effects, and the case shows a good potential
in providing frequency regulation and renewable energy to the grid, as well
as other values in terms of increased electrification. The thesis further
concludes that the changing frequency regulation market and energy system
creates opportunities for new value creation and capture.

• author: Kjellström, Matilda and Wuttke, Caroline
• supervisor: Ola Alexanderson
• organization: Production Management
• course: MIOM05 20231
• year: 2023
• type: H2 - Master's Degree (Two Years)
• subject: Technology and Engineering
• keywords: Case Study, Electrification, Frequency regulation, Energy reserve, Battery, Heavy vehicles, Vehicle-to-grid
• report number: 23/5719
• language: English
• id: 9130443
• date added to LUP: 2023-06-26 21:54:50
• date last changed: 2023-06-26 21:54:50