IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v328y2022ics0306261922014362.html
   My bibliography  Save this article

Smart charging business model framework for electric vehicle aggregators

Author

Listed:
  • Afentoulis, Konstantinos D.
  • Bampos, Zafeirios N.
  • Vagropoulos, Stylianos I.
  • Keranidis, Stratos D.
  • Biskas, Pantelis N.

Abstract

The massive, uncontrolled charging of numerous plug-in electric vehicles is expected to have an adverse impact on the reliable operation of the electricity networks. The flexible and coordinated management of the charging process, also known as smart charging, is a promising solution that provides the system and network operators with additional flexibility and the electric vehicle users with reduced charging costs. The Electric Vehicle Aggregator (EVA) is the entity that is able to exploit the flexibility potential of smart charging, by optimally managing the complex smart charging process over a distributed network of connected charging stations. Given the inherent complexity and requirements of managing the smart charging process at scale, it is critical for EVAs under development to adopt a well-defined business model that is carefully designed and adapted to the unique needs of their business. Towards this direction, this paper proposes a novel Business Model Framework that is customized for designing and developing viable business models for EVAs. The proposed framework is based on the value proposition, creation and delivery, and ultimately on the value capture, enabling EVAs to identify and unlock the untapped potential of flexible charging in wholesale electricity markets. Thus, it can serve as a roadmap for entities interested in fostering smart charging services. The key aspects of the proposed framework are described in detail, putting an emphasis on the interactions of EVAs with the e-mobility ecosystem. Finally, the proposed framework is utilized to examine one business model for the EVA participation in the EU-based balancing market, using actual market signals and settlement rules, highlighting its practicality under real-world conditions.

Suggested Citation

  • Afentoulis, Konstantinos D. & Bampos, Zafeirios N. & Vagropoulos, Stylianos I. & Keranidis, Stratos D. & Biskas, Pantelis N., 2022. "Smart charging business model framework for electric vehicle aggregators," Applied Energy, Elsevier, vol. 328(C).
    • Handle: RePEc:eee:appene:v:328:y:2022:i:c:s0306261922014362
    DOI: 10.1016/j.apenergy.2022.120179
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261922014362
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2022.120179?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Guille, Christophe & Gross, George, 2009. "A conceptual framework for the vehicle-to-grid (V2G) implementation," Energy Policy, Elsevier, vol. 37(11), pages 4379-4390, November.
    2. Lu, Xiaoxing & Li, Kangping & Xu, Hanchen & Wang, Fei & Zhou, Zhenyu & Zhang, Yagang, 2020. "Fundamentals and business model for resource aggregator of demand response in electricity markets," Energy, Elsevier, vol. 204(C).
    3. Torriti, Jacopo & Hassan, Mohamed G. & Leach, Matthew, 2010. "Demand response experience in Europe: Policies, programmes and implementation," Energy, Elsevier, vol. 35(4), pages 1575-1583.
    4. Bertrand Moingeon & Muhammad Yunus & Laurence Lehmann-Ortega, 2010. "Building Social Business Models: Lessons from the Grameen Experience," Post-Print hal-00528385, HAL.
    5. Wong, Stephen D. PhD & Shaheen, Susan A. PhD & Martin, Elliot PhD & Uyeki, Robert, 2023. "Do Incentives Make a Difference? Understanding Smart Charging Program Adoption for Electric Vehicles," Institute of Transportation Studies, Research Reports, Working Papers, Proceedings qt98z4b5rr, Institute of Transportation Studies, UC Berkeley.
    6. Goodarzi, Shadi & Perera, H. Niles & Bunn, Derek, 2019. "The impact of renewable energy forecast errors on imbalance volumes and electricity spot prices," Energy Policy, Elsevier, vol. 134(C).
    7. Vincent Barthel & Jonas Schlund & Philipp Landes & Veronika Brandmeier & Marco Pruckner, 2021. "Analyzing the Charging Flexibility Potential of Different Electric Vehicle Fleets Using Real-World Charging Data," Energies, MDPI, vol. 14(16), pages 1-16, August.
    8. Cai, Sinan & Matsuhashi, Ryuji, 2022. "Optimal dispatching control of EV aggregators for load frequency control with high efficiency of EV utilization," Applied Energy, Elsevier, vol. 319(C).
    9. Juan A. Dominguez-Jimenez & Javier E. Campillo & Oscar Danilo Montoya & Enrique Delahoz & Jesus C. Hernández, 2020. "Seasonality Effect Analysis and Recognition of Charging Behaviors of Electric Vehicles: A Data Science Approach," Sustainability, MDPI, vol. 12(18), pages 1-18, September.
    10. McPherson, Madeleine & Stoll, Brady, 2020. "Demand response for variable renewable energy integration: A proposed approach and its impacts," Energy, Elsevier, vol. 197(C).
    11. Visser, L.R. & Kootte, M.E. & Ferreira, A.C. & Sicurani, O. & Pauwels, E.J. & Vuik, C. & Van Sark, W.G.J.H.M. & AlSkaif, T.A., 2022. "An operational bidding framework for aggregated electric vehicles on the electricity spot market," Applied Energy, Elsevier, vol. 308(C).
    12. Kody T. Ponds & Ali Arefi & Ali Sayigh & Gerard Ledwich, 2018. "Aggregator of Demand Response for Renewable Integration and Customer Engagement: Strengths, Weaknesses, Opportunities, and Threats," Energies, MDPI, vol. 11(9), pages 1-20, September.
    13. Barbero, Mattia & Corchero, Cristina & Canals Casals, Lluc & Igualada, Lucia & Heredia, F.-Javier, 2020. "Critical evaluation of European balancing markets to enable the participation of Demand Aggregators," Applied Energy, Elsevier, vol. 264(C).
    14. Alexandre Lucas & Ricardo Barranco & Nazir Refa, 2019. "EV Idle Time Estimation on Charging Infrastructure, Comparing Supervised Machine Learning Regressions," Energies, MDPI, vol. 12(2), pages 1-17, January.
    15. Maheshwari, Arpit & Paterakis, Nikolaos G. & Santarelli, Massimo & Gibescu, Madeleine, 2020. "Optimizing the operation of energy storage using a non-linear lithium-ion battery degradation model," Applied Energy, Elsevier, vol. 261(C).
    16. Jeannie Oliver & Benjamin Sovacool, 2017. "The Energy Trilemma and the Smart Grid: Implications Beyond the United States," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(1), pages 70-84, January.
    17. Thomas, Dimitrios & D’Hoop, Gaspard & Deblecker, Olivier & Genikomsakis, Konstantinos N. & Ioakimidis, Christos S., 2020. "An integrated tool for optimal energy scheduling and power quality improvement of a microgrid under multiple demand response schemes," Applied Energy, Elsevier, vol. 260(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zheng, Yanchong & Wang, Yubin & Yang, Qiang, 2023. "Bidding strategy design for electric vehicle aggregators in the day-ahead electricity market considering price volatility: A risk-averse approach," Energy, Elsevier, vol. 283(C).
    2. Adrian Chmielewski & Piotr Piórkowski & Jakub Możaryn & Stepan Ozana, 2023. "Sustainable Development of Operational Infrastructure for Electric Vehicles: A Case Study for Poland," Energies, MDPI, vol. 16(11), pages 1-43, June.
    3. Bampos, Zafeirios N. & Laitsos, Vasilis M. & Afentoulis, Konstantinos D. & Vagropoulos, Stylianos I. & Biskas, Pantelis N., 2024. "Electric vehicles load forecasting for day-ahead market participation using machine and deep learning methods," Applied Energy, Elsevier, vol. 360(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Annala, Salla & Ruggiero, Salvatore & Kangas, Hanna-Liisa & Honkapuro, Samuli & Ohrling, Tiina, 2022. "Impact of home market on business development and internationalization of demand response firms," Energy, Elsevier, vol. 242(C).
    2. Adrian Tantau & András Puskás-Tompos & Laurentiu Fratila & Costel Stanciu, 2021. "Acceptance of Demand Response and Aggregators as a Solution to Optimize the Relation between Energy Producers and Consumers in order to Increase the Amount of Renewable Energy in the Grid," Energies, MDPI, vol. 14(12), pages 1-19, June.
    3. Carreiro, Andreia M. & Jorge, Humberto M. & Antunes, Carlos Henggeler, 2017. "Energy management systems aggregators: A literature survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 1160-1172.
    4. Paterakis, Nikolaos G. & Erdinç, Ozan & Catalão, João P.S., 2017. "An overview of Demand Response: Key-elements and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 871-891.
    5. Ray, Manojit & Chakraborty, Basab, 2021. "Impact of demand response on escalating energy access with affordable solar photovoltaic generation in the Global South," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    6. Aikaterini Forouli & Emmanouil A. Bakirtzis & Georgios Papazoglou & Konstantinos Oureilidis & Vasileios Gkountis & Luisa Candido & Eloi Delgado Ferrer & Pandelis Biskas, 2021. "Assessment of Demand Side Flexibility in European Electricity Markets: A Country Level Review," Energies, MDPI, vol. 14(8), pages 1-23, April.
    7. Seatle, Madeleine & McPherson, Madeleine, 2024. "Residential demand response program modelling to compliment grid composition and changes in energy efficiency," Energy, Elsevier, vol. 290(C).
    8. Carmine Cancro & Camelia Delcea & Salvatore Fabozzi & Gabriella Ferruzzi & Giorgio Graditi & Valeria Palladino & Maria Valenti, 2022. "A Profitability Analysis for an Aggregator in the Ancillary Services Market: An Italian Case Study," Energies, MDPI, vol. 15(9), pages 1-26, April.
    9. Pinto, Edwin S. & Gronier, Timothé & Franquet, Erwin & Serra, Luis M., 2023. "Opportunities and economic assessment for a third-party delivering electricity, heat and cold to residential buildings," Energy, Elsevier, vol. 272(C).
    10. Guntram Pressmair & Christof Amann & Klemens Leutgöb, 2021. "Business Models for Demand Response: Exploring the Economic Limits for Small- and Medium-Sized Prosumers," Energies, MDPI, vol. 14(21), pages 1-28, October.
    11. Davor Zoričić & Goran Knežević & Marija Miletić & Denis Dolinar & Danijela Miloš Sprčić, 2022. "Integrated Risk Analysis of Aggregators: Policy Implications for the Development of the Competitive Aggregator Industry," Energies, MDPI, vol. 15(14), pages 1-22, July.
    12. D’Ettorre, F. & Banaei, M. & Ebrahimy, R. & Pourmousavi, S. Ali & Blomgren, E.M.V. & Kowalski, J. & Bohdanowicz, Z. & Łopaciuk-Gonczaryk, B. & Biele, C. & Madsen, H., 2022. "Exploiting demand-side flexibility: State-of-the-art, open issues and social perspective," Renewable and Sustainable Energy Reviews, Elsevier, vol. 165(C).
    13. Rosane Santos & André Luiz Diniz & Bruno Borba, 2022. "Assessment of the Modeling of Demand Response as a Dispatchable Resource in Day-Ahead Hydrothermal Unit Commitment Problems: The Brazilian Case," Energies, MDPI, vol. 15(11), pages 1-15, May.
    14. Nandan Gopinathan & Prabhakar Karthikeyan Shanmugam, 2022. "Energy Anxiety in Decentralized Electricity Markets: A Critical Review on EV Models," Energies, MDPI, vol. 15(14), pages 1-40, July.
    15. Ieva Pakere & Armands Gravelsins & Girts Bohvalovs & Liga Rozentale & Dagnija Blumberga, 2021. "Will Aggregator Reduce Renewable Power Surpluses? A System Dynamics Approach for the Latvia Case Study," Energies, MDPI, vol. 14(23), pages 1-21, November.
    16. Elena Vechkinzova & Yelena Petrenko & Yana S. Matkovskaya & Gaukhar Koshebayeva, 2021. "The Dilemma of Long-Term Development of the Electric Power Industry in Kazakhstan," Energies, MDPI, vol. 14(9), pages 1-21, April.
    17. Mubbashir Ali & Jussi Ekström & Matti Lehtonen, 2018. "Sizing Hydrogen Energy Storage in Consideration of Demand Response in Highly Renewable Generation Power Systems," Energies, MDPI, vol. 11(5), pages 1-11, May.
    18. Chaouachi, Aymen & Bompard, Ettore & Fulli, Gianluca & Masera, Marcelo & De Gennaro, Michele & Paffumi, Elena, 2016. "Assessment framework for EV and PV synergies in emerging distribution systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 719-728.
    19. Kley, Fabian & Lerch, Christian & Dallinger, David, 2011. "New business models for electric cars--A holistic approach," Energy Policy, Elsevier, vol. 39(6), pages 3392-3403, June.
    20. Guo, Shiliang & Li, Pengpeng & Ma, Kai & Yang, Bo & Yang, Jie, 2022. "Robust energy management for industrial microgrid considering charging and discharging pressure of electric vehicles," Applied Energy, Elsevier, vol. 325(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:328:y:2022:i:c:s0306261922014362. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.