This thesis investigates the economic potential of V2G and SmC technologies within European electricity markets, focusing on Sweden, the UK, and Germany. The first part of the thesis is a compilation and analysis of the market mechanisms and FCAS in each country, highlighting market price trends from January 2022 to March 2025. Sweden shows the lowest Day-Ahead prices, while Germany and the UK have similar Day-Ahead prices. The selected FCAS markets, FCR-Din Sweden, DC in the UK, and FCR in Germany, show volatile prices. Generally, the UK has the lowest FCAS prices, and Germany has the highest.

Through a mixed-integer linear problem, the study optimises EV charging and discharging strategies by considering participation in Day-Ahead and FCAS markets. This analysis examines four cases: two SmC strategies and two V2G strategies. For each pair, one strategy incorporates only Day-Ahead market participation, while the other includes both Day-Ahead and one FCAS market. The aim is to minimise the cost for an EV owner with respect to the market mechanisms and the selected case.

The results reveal that V2G, together with participation in the FCAS markets, have the highest profitability in all countries. Furthermore, in Sweden and Germany, FCAS participation shows the highest potential. In the UK, V2G charging and discharging show the highest potential because the market price models are well-suited for energy arbitrage.

However, when accounting for battery degradation, V2G generally becomes unprofitable in the UK due to high energy throughput, suggesting that SmC combined with FCAS participation is more profitable. In contrast, V2G, together with FCAS participation, is still the most profitable in Sweden and Germany, followed by SmC combined with participation in the FCAS.

The study also finds that declining market prices have reduced the profit, affecting the economic potential of V2G in the studied electricity markets. These insights provide valuable guidance for understanding how different markets impact the economic potential of electric vehicle charging and discharging strategies.