A User-centric Game for Balancing V2G Benefits with Battery Degradation of Electric Vehicles

Abstract

We present a novel user-centric vehicle-to-grid (V2G) framework that enables electric vehicle (EV) users to balance the trade-off between financial benefits from V2G and battery health degradation based on individual preference signals. Specifically, we introduce a game-theoretic model that treats the conflicting objectives of maximizing revenue from V2G participation and minimizing battery health degradation as two self-interested players. Via an enhanced semi-empirical battery health degradation model, we propose a finite-horizon smart charging strategy based on a horizon-splitting approach. Our method determines an appropriate allocation of time slots to each player according to the user's preferences, allowing for a flexible, personalized trade-off between V2G revenue and battery longevity. We conduct a comparative study between our approach and a multi-objective optimization formulation by evaluating the robustness of the charging schedules under parameter uncertainty and providing empirical estimates of regret and sensitivity. We validate our approach using realistic datasets through extensive trade-off studies that explore the impact of factors such as ambient temperature, charger type, and battery capacity, offering key insights to guide EV users in making informed decisions about V2G participation.